In a historic move, the newly created Federal Housing Finance Agency (FHFA), after what it called "a painstaking review," took control of mortgage giants Fannie Mae and Freddie Mac on Sunday, September 7, by placing them into conservatorship. The boards of both Fannie and Freddie consented to the move, according to James B. Lockhart, director of FHFA, the successor organization to the Office of Federal Housing Enterprise Oversight. At the same time, the federal government purchased 79.9% ownership of each of the government-sponsored enterprises (GSEs) with the purchase of senior preferred stock for $1 billion for each company. Treasury also announced agreements with each GSE to purchase mortgage-backed securities (MBS) from new Fannie and Freddie MBS issues in the open market. The deteriorating outlook for Fannie Mae and Freddie Mac was reflected in their falling share prices. The takeover announcement also included notice of a number of changes in the way that Fannie and Freddie will do business.