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Fannie and Freddie need “significant capital” to leave conservatorship, Mnuchin says

In a hearing before the House Financial Services Committee Wednesday, Treasury Secretary Steven Mnuchin said no definite plans have been made for the future of Fannie Mae and Freddie Mac, but discussed the idea that they could be released from conservatorship before their full capital levels are reached.

In its Final Capital Rule released in November, the Federal Housing Finance Agency set the capital requirements for the government sponsored enterprises’ tier 1 capital in excess of 4% to avoid restrictions on capital distributions and discretionary bonuses. That means as of June 30, 2020, the enterprises together would have been required details ⇒

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