by wildcherry on Sunday, September 7th, 2008 | Business, News

It finally happens so here’s the detail story and description of how they are taking over Fannie Mae and Freddie Mac!

NEW YORK (Reuters) - The U.S. government announced on Sunday that it was taking control of troubled mortgage finance giants Fannie Mae and Freddie Mac, in its latest effort to shore up the slumping housing market.

KEY POINTS:

* The regulator of the two companies, the Federal Housing Finance Agency (FHFA) will manage the two companies on a temporary basis.

* U.S. establishes preferred stock purchase agreements to insure each GSE retains positive net worth

* Treasury’s Paulson told regulators wouldn’t commit taxpayers funds to GSEs without conservatorship

* Treasury establishing secured lending credit facility for Fannie, Freddie, Home Loan Banks

* Treasury to begin buying Fannie, Freddie MBS later this month under temporary program

* Herb Allison to be new CEO of Fannie, David Moffett CEO of Freddie

Tags: Fannie mae, Freddie Mac