Pursuits
Fannie-Freddie Debate Revived by Mnuchin Comments on Trump Plans
- Companies’ shares soared after Treasury nominee’s TV interview
- Transition team comments didn’t imply support of specific plan
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The U.S. mortgage market could soon undergo its biggest change in decades.
Fannie Mae and Freddie Mac shares soared 46 percent Wednesday after Steven Mnuchin, President-elect Donald Trump’s pick to become Treasury secretary, said the new administration would act quickly to end federal control of the two mortgage-finance giants. Some shareholders speculated that his comments might mean that the administration could move to recapitalize and release the companies into the private market, potentially restoring some profits to private shares.