Fannie Mae and Freddie Mac shares soared Friday amid fresh reports that the Trump administration is working on a proposal that would recommend freeing the mortgage-finance giants from government control.
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.
Otting mentioned, as he previously has, that the Treasury Department and the White House are expected to release a broad plan for housing that will include details about reform and will likely include a recommendation for ending Fannie and Freddie conservatorships, the FHFA spokesperson said. Treasury Secretary Steven Mnuchin has said that the Trump administration wants to end government control of the companies, and Otting intends to work to advance that plan, the spokesperson said.
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.
Read more in American Banker.