Fannie Mae, Freddie Mac should be turned into utilities, says trade group
The plan would open the door for private competitors, and subject Fannie and Freddie to stringent capital requirements and tough oversight
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Washington
A POWERFUL housing trade group is wasting no time in pushing the Trump administration and Republican-led Congress to address one of the last unresolved issues from the financial crisis, outlining a proposal Tuesday to overhaul mortgage-finance giants Fannie Mae and Freddie Mac.
The Mortgage Bankers Association plan would make Fannie and Freddie privately-owned utilities and cap their returns on capital. It would also turn the government's implicit backstop of the companies into an explicit guarantee of the mortgage-backed securities they sell to investors.
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