The Trump administration yesterday took a critical step toward releasing Fannie Mae and Freddie Mac from government control, agreeing to allow the mortgage giants to hold on to more of their profits, the Washington Post reported. The allowance is a move toward independence for the mortgage companies more than a decade after taxpayers bailed them out. It comes a month after the Trump administration unveiled a sweeping plan to remake the housing market that includes allowing Fannie Mae and Freddie Mac to operate as private companies again. With this step, Fannie Mae and Freddie Mac will be allowed to hold onto more capital, $25 billion and $20 billion respectively. That is still far less capital than the $100 billion the Trump administration estimates both companies and Congress still must sign off on to fulfill other measures envisioned by the Trump administration to remake the companies.
