Fannie Mae stock price target cut to $2 from $3 at B. Riley FBR

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Fannie, Freddie can hold more capital, per Treasury-FHFA agreement

Fannie Mae and Freddie Mac , the mortgage guarantors under government control, will hold higher levels of capital, according to an agreement between the Treasury Department and their regulator. The enterprises had been required to send all their profits to Treasury after a 2012 agreement, but an amendment in 2017 allowed them to retain a slim capital buffer of $3 billion each. The additional capital is one of several steps recommended by Treasury as a way forward for the housing finance system and may be a precursor to a new capital raise for the enterprises. Fannie will retain $25 billion and Freddie $20 billion. Shares of both companies are up more than 200% in the year to date.

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