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IPFS News Link • Economy - Economics USA

Fannie, Freddie Soar On Report They May Be Released From Government Control

• https://www.zerohedge.com, By Tyler Durden

Reviving an age-old debate whether the insolvent, bailed-out zombies GSEs, Fannie and Freddie will emerge from conservatorship, the shares of Fannie Mae and Freddie Mac soared Friday amid reports that the Trump Administration is working on proposal that would likely recommend that the mortgage-finance giants be released from government control as part of a broader plan for U.S. housing finance.

According to Bloomberg, Joseph Otting, acting director of the Federal Housing Finance Agency, commented on the administration's plans at an internal gathering to introduce himself to staff and "establish open lines of communication," an FHFA spokesperson said in a statement.

The statement by Otting, who is serving as interim FHFA director in addition to heading the Office of the Comptroller of the Currency, corroborates earlier reports that the administration is working on a plan. Still, the FHFA spokesperson didn't offer details on what might be included in any proposal, such as whether Treasury would call for releasing the companies without Congress passing legislation.


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