Fannie-Freddie Profit Sweep Defended by Key Treasury Adviser

The government sweep of profits from Fannie Mae and Freddie Mac was defended by the top Treasury Department housing official, who called again for Congress to replace the U.S.-owned mortgage-finance giants.

Michael Stegman, a senior adviser at Treasury, used his speech Thursday at a Goldman Sachs housing-finance conference in New York to respond to shareholders who have sued to stop the sweep and called for the companies to be allowed to build capital and be freed from U.S. conservatorship.