Fannie Mae-No Politics (FNMA)

[skeptic7]

"On August 17, 2012, Treasury and the GSEs, through FHFA, agreed to the Third
Amendment to the PSPA, which is the focus of this litigation. The Third Amendment “replaced
the previous dividend formula with a requirement that the GSEs pay, as a dividend, the amount
by which their net worth for the quarter exceeds a capital buffer of $3 billion. The capital buffer
gradually declines over time by $600 million per year, and is entirely eliminated in 2018.”
Treasury Mot. at 18. In simpler terms, the amendment “requires Fannie Mae and Freddie Mac to
pay a quarterly dividend to Treasury equal to the entire net worth of each Enterprise, minus a
small reserve that shrinks to zero over time.”

https://ecf.dcd.uscourts.gov/cgi-bin/show_public_doc?2013cv1025-51