Freddie Mac and Fannie Mae were placed under the control of the Federal Housing Finance Agency (FHFA), what does that mean?
On September 7, 2008 the regulator of Freddie and Fannie, FHFA, was appointed their conservator. The Agencies continue to be run as operating companies under the guidance of FHFA. As part of the plan, new management will run the companies and the stock of both companies will continue to be traded on the NYSE, however all dividends are suspended in order to conserve capital. This will allow the Agencies to continue to play an integral role in working through the difficulties in the US housing market.
