On Sep. 7, 2008, the government took over Fannie Mae and Freddie Mac. Under the terms of the rescue, the Treasury has invested billions to cover the companies' losses. The Fannie and Freddie bailout is separate from the broader $700 billion bailout -- known as the TARP -- and instead comes via the Housing and Economic Recovery Act of 2008, passed in July 2008. In February 2009, Treasury Secretary Tim Geithner said as much as $200 billion in taxpayer money might be put into each company. In December of 2009, the Treasury removed that cap, meaning an unlimited amount of money could be invested. In August of 2012, the Treasury announced further changes to its agreements with both Fannie and Freddie. Starting in 2013, both Fannie and Freddie began paying the Treasury dividends based on a different arrangement: Each quarter, Fannie and Freddie must make payments based on their net value above a capital reserve level. In previous years, Fannie and Freddie had paid dividends based on a 10 percent annual rate. The capital reserve level was changed to $3 billion near the end of 2017. In September 2019, the capital reserve level was changed to $25 billion. In January 2021, the Treasury again changed the agreement, raising the capital reserve level to Fannie's "regulatory minimum capital," which will postpone further payments indefinitely.