A government official that joined the U.S. Treasury Department to help overhaul how American home loans are guaranteed then traded by the U.S. government is heading back to the private sector, the New York Times reports, citing a person familiar with the matter.
Craig S. Phillips, a Wall Street mortgage trader, joined the government in 2017 and has since helped make a plan for relaxing financial regulations enacted after the 2008 financial crisis.
His exit adds to the uncertainty over what will happen with Fannie Mae (OTCQB:FNMA +1.1%) and Freddie Mac (OTCQB:FMCC +2.5%), the two giant mortgage finance companies that have been under government conservatorship since the financial crisis.
Investors had bought shares in the two companies on the expectation that they'd be eventually released from government control.
Previously: Frannie privatization unlikely, says Sherrod Brown - FT (May. 13 2019)
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