Mortgage giants cut deal with US Treasury to cover expected losses

Washington

FANNIE Mae and Freddie Mac, the government-controlled mortgage finance giants rescued during the financial crisis, reached a deal with the US Department of the Treasury on Thursday.

The deal allows them to keep some of their profits as they brace for losses that will be activated by the tax bill soon to be signed by US President Donald Trump.

Under the terms of the agreement, each company will be allowed to retain U…