Subsequently, the Amended and Restated SPSPAs were amended again on (“First Amendment”) Decem(“Second Amendment”) and Aug(“Third Amendment’). The Original Agreements were amended and restated on Septem(“the Amended and Restated Senior Preferred SPSPAs”). In exchange for Treasury’s financial support, the SPSPAs require Fannie Mae and Freddie Mac, among other things, to make quarterly dividend payments to Treasury, provide Treasury with a Liquidation Preference, and beginning in 2010 pay Treasury a periodic commitment fee that reflects the market value of the outstanding Treasury commitment, as well as Stock Warrants for the purchase of common stock representing 79.9% of the common stock of Fannie Mae and Freddie Mac, respectively, on a diluted basis. The SPSPAs were designed to ensure that Fannie Mae and Freddie Mac, respectively: (i) provide stability to the financial markets (ii) prevent disruptions in the availability of mortgage finance and (iii) protect the taxpayer. Department of the Treasury (Treasury) provides Fannie Mae and Freddie Mac with financial support through the Senior Preferred Stock Purchase Agreements (SPSPAs), which were executed on September 7, 2008, one day after Fannie Mae and Freddie Mac entered conservatorships (“Original Agreements”). Fannie Mae and Freddie Mac continue to operate under conservatorship, as they have since 2008.
