Trump seeks to reform Fannie Mae and Freddie Mac

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

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)