The Enterprises continue to operate under conservatorship, as they have since 2008. The U.S. Department of the Treasury provides the Enterprises with financial support through the Senior Preferred Stock Purchase Agreements, established at the same time as the Enterprises entered conservatorship. The Senior Preferred Stock Purchase Agreements were designed to ensure each Enterprise maintained positive net worth. The terms of the agreements require a 10 percent reduction in the Enterprises' retained portfolios each year. The only material additions to these portfolios come from delinquent mortgages pulled out of Enterprise mortgage-backed securities after being four months delinquent. Under these agreements, each Enterprise is required to pay to the U.S. Department of the Treasury a quarterly dividend equal to 10 percent of the total amount drawn under their respective agreements.
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