Fannie Mae (FNMA)

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Regulator Warns Capital Buffers Shrinking at Fannie, Freddie: Federal Housing Finance Agency Director Melvin L. Watt warned that Fannie Mae and Freddie Mac are in danger of losing the capital buffers that enable the two government-sponsored enterprises to absorb financial losses, a development that could put a chokehold on the mortgage market and lead to another taxpayer-funded bailout. (Rollcall)

http://www.jdsupra.com/legalnews/window-on-washington-this-week-in-the-46875/

Federal Housing Finance Agency Director Melvin L. Watt warned that Fannie Mae and Freddie Mac are in danger of losing the capital buffers that enable the two government-sponsored enterprises to absorb financial losses, a development that could put a chokehold on the mortgage market and lead to another taxpayer-funded bailout.

The GSEs will see their capital cushions reduced to zero on Jan. 1, 2018, Watt said in testimony before the House Financial Services Committee Tuesday.

http://www.rollcall.com/news/policy/regulator-warns-capital-buffers-shrinking-at-fannie-freddie