Fannie, Freddie Hit a 5-Year High on Plan for ‘Eventual Release’

The agencies that control mortgage giants Fannie Mae and Freddie Mac set out a roadmap for releasing the pair from government supervision, sending the entities’ common stock to the highest levels since 2019.

The new guidelines released Thursday reinstate the US Treasury’s power to approve any such plan in a bid to keep the process “orderly.”

“The agreement restores Treasury’s previous right to consent to a release of the GSEs from conservatorship,” the Treasury Department and Federal Housing Finance Agency said in a joint statement. Fannie and Freddie are known as government-sponsored enterprises, or GSEs.

It will “help ensure ...