U.S. Treasury Secretary Steven Mnuchin on Thursday unveiled a plan to overhaul the housing market that would release Fannie Mae and Freddie Mac from government control.
“The Trump Administration is committed to promoting much needed reforms to the housing finance system that will protect taxpayers and help Americans who want to buy a home,” he said.
{mosads}Fannie Mae, which stands for the Federal National Mortgage Association, and Freddie Mac, the Federal Home Loan Mortgage Corporation, were put into government conservatorship during the 2008 financial crisis, which started in the housing market.
The Treasury Department, which has poured $190 billion into the institutions since the crisis, called their conservatorship the “last unfinished business of the financial crisis.”
The plan would seek to level the playing field between the two government-sponsored enterprises, limit government-backing for the institutions for a fee and invite more private competition into the mortgage market.
The 50-part plan would require both new legislation and government action, but it is unclear whether they will be able to advance legislation in a bitterly divided Congress ahead of an election year.