Last Friday, the U.S. Treasury announced several crucial changes to the Preferred Stock Purchase Agreements (PSPAs) of Fannie Mae and Freddie Mac.

The agencies' retained mortgage investment portfolios will now be wound down at a faster rate, increasing to 15% a year versus 10% earlier. This begins from a cap of $650 billion at the end of 2012. The portfolios must be reduced to $250 billion by the end of 2018.

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