Washington — The U.S. Treasury and the Federal Housing Finance Agency (FHFA) today agreed on a number of changes to the terms of the purchase agreements (PSPAs). The agreement allows Fannie Mae and Freddie Mac to maintain a limited capital buffer of an amount sufficient to cover fluctuations in revenue in the normal course of operations. “The Community Home Lenders Association warmly congratulates the Director of the FHFA, Calabria and Finance Minister Mnuchin, for their correspondence agreement which allows Fannie Mae and Freddie Mac to significantly increase the amount of capital they can keep,” said Scott Olson, Executive Director of the CHLA. “FHFA is committed to cooperating with the Ministry of Finance in the coming months to amend the action agreements and pursue a broader reform of housing finance,” Calabria said. “The objectives of the reform include limiting the government`s role in housing finance, increasing competition in the market, focusing on affordable housing and sustainable housing. The status quo is not an option. Now it`s time to act. Fannie Mae FNMA, +7.92% and Freddie Mac FMCC, +6.25%, the state-controlled mortgage guarantees, will hold a higher capital, according to an agreement between the Ministry of Finance and its regulator. Companies had been forced under a 2012 agreement to send all their profits to the Treasury, but a change in 2017 allowed them to keep a reduced capital buffer of $US 3 billion each. .