Mnuchin Says He Expects Fannie, Freddie To Continue To Pay Dividends

Treasury Secretary Steven Mnuchin said Thursday he expects Fannie Mae and Freddie Mac to continue to pay its dividends to the government, despite the financial conditions of the firms. The Treasury Secretary told a Senate Banking Committee hearing that he has had several discussions about Fannie and Freddie Mac with Mel Watt, director of the Federal Housing Finance Agency, which has oversight over the enterprises. "I did tell him that it was our expectation at Treasury that they would pay us the dividend and we hope they continue to do so per the agreement," Mnuchin said. Watt had told Congress last week that he has the right to suspend the quarterly dividend payment if he believes that payout would jeopardize the safety and smooth functioning of the enterprises.