David Moffett, CEO of Freddie Mac, announced his resignation today.
Freddie Mac is one of the two government sponsored entities that buys mortgages from lenders. Lenders rely on Freddie Mac and Fannie Mae to buy these mortgages to get more money to make additional loans.
Moffett said he wants to get back to the financial services sector.
In a statement released this morning, Freddie Mac announced:
“Management continues to estimate that FHFA, in its capacity as conservator of Freddie Mac, will submit a request to Treasury to draw an additional amount of approximately $30 billion to $35 billion under the Senior Preferred Stock Purchase Agreement between Freddie Mac and Treasury, following the timely filing of the company’s annual report on Form 10-K with the Securities and Exchange Commission.”
This means that FHFA wants the Treasury to provide more funding to Freddie Mac.
FHFA, the Federal Housing Finance Agency, is the federal agency that regulates Fannie Mae and Freddie Mac.
March 2, 2009.