A report quietly released by the Treasury Department says there is “clear evidence” that a program President Trump wants to cut helps recipients provide financial services to the most underserved communities.
The Treasury Department significantly raised an estimate for how much the exemption will cost the government over the next decade, putting credit unions on guard that bankers' arguments could be gaining traction.
FHFA Director Mel Watt warned Thursday that to prevent a potential draw on the Treasury Department by the government-sponsored enterprises, he is willing to act unilaterally to rebuild capital at Fannie and Freddie.
The President's budget calls for eliminating the Treasury's Community Development Financial Institution grant program, which often benefits poor and rural consumers in areas that Trump easily carried in the election.
A federal appeals court ruling has opened the door for litigants to challenge a 2012 decision by the U.S. government to sweep all of Fannie Mae and Freddie Mac's profits into the coffers of the Treasury Department.