Banking Law News

Fannie-Freddie Debate Revived by Mnuchin Comments on Trump Plans

Dec. 5, 2016, 5:00 AM

The U.S. mortgage market could soon undergo its biggest change in decades.

Fannie Mae and Freddie Mac shares soared 46 percent earlier this week after Steven Mnuchin, President-elect Donald Trump’s Treasury secretary pick, said the new administration would act quickly to end federal control of the two mortgage-finance giants. Some shareholders speculated that his comments might mean that the administration could move to recapitalize and release the companies into the private market, potentially restoring some profits to private shares.

It’s unclear what Trump or Mnuchin want the housing-finance system to look like, but the comments in a Fox Business television...

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