December 21, 2017 / 2:35 PM / a year ago

Fannie Mae, Freddie Mac receive $3 billion capital cushion

WASHINGTON, Dec 21 (Reuters) - The housing regulator overseeing Fannie Mae and Freddie Mac has reinstated a $3 billion capital cushion for the housing enterprises, citing the imminent tax overhaul.

The Treasury Department and Federal Housing Finance Agency also said the enterprises likely will need additional government funds, as approved tax legislation could lead to a write-down of deferred tax assets the two currently hold. The $3 billion cushion is expected to cover “ordinary income fluctuations,” according to the FHFA. (Reporting by Pete Schroeder Editing by Chizu Nomiyama)

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