Fannie, Freddie closer to private ownership

|About: Federal National Mortgage ... (FNMA)|By:, SA News Editor

The Trump administration is putting the finishing touches on a plan to return mortgage-finance giants Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) to private-shareholder ownership, WSJ reports.

The proposal is expected to include a version of what has been called "recap and release," which would ensure the firms have adequate capital to absorb loan losses in a future housing slump and thus avoid needing another taxpayer-backed bailout.

If carried out, the companies could return to a status similar to how they operated before the financial crisis.

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