Treasury unveils ‘fix’ for restoring Fannie Mae, Freddie Mac
Treasury Secretary Steven Mnuchin told FOX Business he is dedicated to removing mortgage giants Fannie Mae and Freddie Mac from the government’s control.
“I am determined that we have a fix to the GSEs [government sponsored enterprises] and that we don't leave them in conservatorship for the rest of the time,” he told Maria Bartiromo during an exclusive interview on “Mornings with Maria” on Monday. While Mnuchin declined to be specific on potential "fixes" he did say, “I think that having a government guarantee on a 30-year mortgage is important for liquidity in the markets,” he added.
Mnuchin also commented on leadership, including the option of replacing the Federal Housing Administration (FHA) director. “That’s something we are going to look at and make sure we have someone in that job that supports the agenda” he added. The current FHA director is Melvin Watt.
Although it’s “highly unlikely” that Congress addresses it this year, Mnuchin said it will be a “big focus” post-midterm elections.
Fannie Mae and Freddie Mac were bailed out by the U.S. government at the height of the financial crisis in 2008.
*4/27/18: The original article was edited to reflect the FHA is led by a director versus a commissioner.