The White House proposed on Thursday to move Fannie Mae and Freddie Mac out of government custody and back into the private sector, the most comprehensive statement of the administration’s preferences on housing finance reform yet, the Washington Examiner reported. The proposal, included in a broader government overhaul plan, would resemble draft legislation authored by Sen. Bob Corker (R-Tenn.) meant to attract bipartisan support. It would require Congress to act, suggesting that the Trump administration doesn’t intend to pursue a major administrative overhaul of the two-bailed out mortgage giants. It calls for allowing Fannie and Freddie to enter the private sector after being in government conservatorship since 2008. Then, they — and their competitors that might enter the market — would be given an explicit government guarantee on mortgage-backed securities that they issue.
