FHFA Reinstates Capital Reserve for Fannie, Freddie

Thursday, December 21, 2017 - 10:15am

The Federal Housing Finance Agency (FHFA) will reinstate a $3 billion capital reserve amount for Fannie Mae and Freddie Mac for the fourth quarter of 2017, according to a statement today from FHFA Director Melvin Watt. The reserve can be used as a cushion against expenses, including fluctuations due to a drop in the corporate tax rate based on the passage of the Tax Cuts and Jobs Act.