The Treasury Department on Friday said it is restructuring the terms of its investment in Fannie Mae and Freddie Mac, which could render them more dependent than ever on the government.

Instead of paying a mandatory 10% quarterly dividend, an arrangement which at times has forced the government-sponsored enterprises to borrow more from the government to pay the government, the Treasury will now capture all of their profits. When Fannie and Freddie aren't making money, they won't have to pay.

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