U.S. to revamp Fannie, Freddie bailout terms

The Treasury Department on Friday announced that it would rework the terms of its bailout of mortgage giants Fannie Mae and Freddie Mac to shrink the companies more quickly, make sure taxpayers benefit from any profits and assure investors about ongoing federal support for the firms.

“We are taking the next step toward responsibly winding down Fannie Mae and Freddie Mac, while continuing to support the necessary process of repair and recovery in the housing market,” Michael Stegman, a Treasury official who oversees housing finance policy, said in a statement. “As we continue to work toward bipartisan housing finance reform, we are committed to putting in place measures right now that support continued access to mortgage credit for American families, promote a responsible transition, and protect taxpayer interests.”

— The Washington Post