Congressional Democrats are seeking more details on reports that the Trump administration is formulating a plan to release Fannie Mae and Freddie Mac from federal control.
The scrutiny from House Financial Services Committee Chairwoman Maxine Waters and Senator Sherrod Brown, the top Democrat on the Senate Banking Committee, follows statements from a Trump-appointed regulator about ending the mortgage giants’ decade-long conservatorships.
Joseph Otting, the acting head of the companies’ regulator, told Federal Housing Finance Agency staff at a private meeting last week that the Treasury Department and White House will soon release a proposal.
“To date, we have not seen a comprehensive statement from the White House and Treasury Department under the Trump administration providing their views on regulation of the housing-finance system,” Waters and Brown wrote in a Friday letter to Otting, who is leading the FHFA until a permanent nominee is confirmed by the Senate. “Your comments call into question the independence of the FHFA under your leadership.”
Speculation that Otting, who is also the Comptroller of the Currency, and Treasury Secretary Steven Mnuchin might try to lay the groundwork for freeing Fannie and Freddie from the government’s grip has spurred a recent rally in the companies’ shares. It could trigger bipartisan criticism if the Trump administration sought to bypass Congress in ending the conservatorships.
This article was provided by Bloomberg News.