To enable the government-sponsored enterprises to build capital, six Democrats on the Senate Banking Committee and some financial trade organizations are advocating for the elimination of policy that forces Fannie Mae and Freddie Mac to forward all of their profits to the Treasury Department.
The senators wrote in a letter to Treasury Secretary Steven Mnuchin and Federal Housing Finance Agency Director Mel Watt that the profit sweep policy will leave the entities responsible for backing the mortgage industry deficient the funds necessary to do so.
Find out which organizations are among those that have joined Senate Democrats and spoken up on the matter.