Freddie Mac (FMCC.OB) is reportedly spending hundreds of millions of dollars per year to hold onto market share instead of sending the money to the Treasury. The cash is going to lenders as compensation payments to make up for Freddie's MBSs trading at a lower price than those of Fannie Mae (FNMA.OB). Despite the payments, Freddie's market share has declined to the low 30s from its long-term average of 40%.
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