Senators Warn Against Suspending Fannie, Freddie Dividends
- Bipartisan group says an action would hurt legislative efforts
- FHFA official says dividend payment will be made on Friday
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A bipartisan group of senators told Mel Watt, the regulator who oversees Fannie Mae and Freddie Mac, that he shouldn’t allow the companies to recapitalize without congressional approval.
Letting the U.S.-controlled mortgage giants build capital buffers would hurt legislative efforts to overhaul the housing-finance system, the senators said in a letter Wednesday.