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UPDATE 1-Fannie, Freddie will hand over $10 bln in profits to U.S.
March 30, 2017 / 4:42 PM / 8 months ago

UPDATE 1-Fannie, Freddie will hand over $10 bln in profits to U.S.

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WASHINGTON, March 30 (Reuters) - Fannie Mae and Freddie Mac will transfer $10 billion in earnings to the U.S. Treasury, a spokeswoman for the regulator said on Thursday, in an expected move from the mortgage-finance giants.

The payment, which is due on Friday, will be made as scheduled, said a spokeswoman for the Federal Housing Finance Agency.

Washington took control of Fannie and Freddie as the housing crisis worsened in September 2008. The companies have since grown profitable and lawmakers are debating about whether to cut government ties to the agencies that promote home ownership.

A legislative overhaul of Fannie and Freddie is unlikely this year partly because President Donald Trump has other priorities, according to Congressional staffers.

Political uncertainty has turned attention to the balance sheets of Fannie Mae and Freddie Mac. Both companies would need to boost their capital reserves before leaving government hands. (Reporting By Patrick Rucker; Editing by Chizu Nomiyama and Jeffrey Benkoe)

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