Fannie Mae, Freddie Mac Income Sweeps Will Be Decided By The Courts

When Senate Banking Committee Chairmen Tim Johnson (D., S.D.) and Mike Crapo (R., Idaho) outlined a new proposal for how to deal with Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC), the two government sponsored enterprises saw their common stock prices plunge on the assumption that the new framework would enshrine third amendment income sweeps into law. But recent comments from Senator Crapo imply that the fight between shareholders and Treasury will have to play itself out in the courts. “They have filed suit right now in order…