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Trump’s Time Is Short to Overhaul Fannie-Freddie as Hedge Funds Want

  • Treasury urged by FHFA to agree to changes before Trump leaves
  • Bond investors oppose revamp, arguing it would hurt MBS market
Aerial Views Of Silicon Valley Housing And Tech Campuses
Photographer: Sam Hall/Bloomberg

President Donald Trump is running out of time to do what hedge funds and other investment firms with big ownership stakes in Fannie Mae and Freddie Mac have wanted since he took office: put the mortgage giants on a path to exiting government control.

While Trump has long vowed an overhaul of the companies, he’s made little progress in four years and now has less than two months to act. Fannie and Freddie’s regulator, Federal Housing Finance Agency Director Mark Calabria, wants to make sweeping changes before President-elect Joe Biden is sworn in -- but Calabria can’t pull the trigger without the blessing of Treasury Secretary Steven Mnuchin.