Senators Urge FHFA to Maintain GSE Dividend Payment

Bloomberg writes that a bipartisan group of Senators has written a letter to FHFA Director Mel Watt, urging him to maintain the quarterly dividend payments that Fannie Mae and Freddie Mac (GSEs) make to Treasury, and not allow the GSEs to rebuild capital without Congressional approval. The letter stated that allowing the GSEs to rebuild capital would hamper legislative efforts to reform the housing finance system. Republicans Bob Corker of Tennessee and Thom Tillis of North Carolina, as well as Democrats Mark Warner of Virginia, Heidi Heitkamp of North Dakota, and Jon Tester of Montana all signed on to the letter. In response to the letter, an FHFA spokesman stated that the GSEs would make their expected dividend payment of approximately $10 billion on Friday, April 7th.

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