Fannie-Freddie Won't Be Addressed Until Next Year, Mnuchin Says

More work needs to be done to fix the two mortgage giants at the heart of the U.S. housing-finance system, Mnuchin said Thursday at a Politico conference in Washington. The companies aren't yet in a position to be released from government control, he said.

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Hedge funds and other investors who own Fannie and Freddie shares have fought for years to secure a portion of the companies' profits, which now all flow to the U.S. Treasury. Firms including Fairholme Funds Inc., Paulson & Co. and Perry Capital have sued the government or funded lobbying campaigns in an attempt to change the policy.

The government took control of Fannie and Freddie in 2008, eventually injecting them with more than $187 billion during the financial crisis. The terms of the bailout originally called for a 10 percent dividend, but in 2012 the government changed them to sweep nearly all of the profits when they made one. The companies have since paid the government more than $270 billion in dividends... Hedge funds and other investors who own Fannie and Freddie shares have fought for years to secure a portion of the companies' profits, which now all flow to the U.S. Treasury. Firms including Fairholme Funds Inc., Paulson & Co. and Perry Capital have sued the government or funded lobbying campaigns in an attempt to change the policy.

The government took control of Fannie and Freddie in 2008, eventually injecting them with more than $187 billion during the financial crisis. The terms of the bailout originally called for a 10 percent dividend, but in 2012 the government changed them to sweep nearly all of the profits when they made one. The companies have since paid the government more than $270 billion in dividends.