The Treasury Department has held talks with Houlihan Lokey Inc. about hiring the restructuring firm to advise it on Fannie Mae and Freddie Mac, the U.S. mortgage giants that have been under federal control since the 2008 financial crisis, Bloomberg News reported. Retaining the investment bank would be an important step in Treasury’s push to overhaul Fannie and Freddie. But Houlihan Lokey hasn’t been hired and there’s no indication that the Trump administration intends to free the companies from the government’s grip anytime soon. Many hurdles remain and the process is fraught with political and technical difficulties. A Treasury spokesman denied that the agency is holding current discussions with any advisory firm. Still, bringing on an outside expert could prove crucial as the administration enters a new phase on housing-finance policy. The Treasury today is expected to released its long-anticipated plan — requested by President Donald Trump — for ending Fannie and Freddie’s conservatorships.
