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Trump seeks to reform Fannie Mae and Freddie Mac

The two government-sponsored entities have been in conservatorship since the financial crisis

(Credit: White House)

The Trump administration will not bypass Congress in its effort to reform Fannie Mae and Freddie Mac. The government effectively nationalized them in 2008 in a bid to stabilize the housing market as mortgage defaults mounted.

Be Smart: In a memo to his cabinet, the President directed HUD and the Treasury to develop a plan that would bring the government-sponsored entities out of conservatorship. The goal is to allow for increased competition from the private sector, according to the Washington Post.

Heard on the Street: Raymond James told the Financial Times: “The memo takes off the table the concern that there is going to be sweeping executive action in the near term to reform housing in the US.” (FT)

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