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Obama Officials Resist Calls to Release Fannie Mae, Freddie Mac

  • White House adviser Stegman says federal control will continue
  • Calls to recapitalize are `misguided,' Treasury's Weiss says

A White House official said housing-finance reform is no longer expected in the near term as he dismissed investors’ calls for releasing Fannie Mae and Freddie Mac from government conservatorship.

Michael Stegman, a top adviser to President Barack Obama on housing matters, told a gathering of mortgage bankers on Monday that the administration is sticking with keeping the mortgage-finance giants under U.S. control. The chief executive officers of Fannie Mae and Freddie Mac also said they don’t see a path out of conservatorship any time soon.