Treasury to change relationship with Fannie, Freddie
A pedestrian is reflected in a window as he walks by a sign displaying mortgage rates inside a Citibank office on June 7, 2012 in San Francisco, Calif.
Jeremy Hobson: Well here in this country, there's word this morning that the Treasury Department is going to revamp its financial relationship with the mortgage giants Fannie Mae and Freddie Mac. Ever since being bailed out by the government four years ago, Fannie and Freddie have been making quarterly 10 percent dividend payments to Uncle Sam -- even if they have to borrow money to do so.
The new plan would require the firms to turn over all of their profits to the government but pay nothing when they're unprofitable.
Chris Low is chief economist with FTN Financial, and he joins us live to discuss.