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Fannie, Freddie Slump as Mnuchin Rules Out Freeing Companies

  • He tells WSJ he doesn’t want to put taxpayers at risk
  • Mnuchin still likely to back changes to bailout agreements
Steven Mnuchin’s decision means he will fall short of a goal he pledged to accomplish relatively quickly just days after President Trump’s 2016 election win. 

Steven Mnuchin’s decision means he will fall short of a goal he pledged to accomplish relatively quickly just days after President Trump’s 2016 election win. 

Photographer: Susan Walsh/AP Photo/Bloomberg

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Fannie Mae and Freddie Mac plunged Tuesday after Treasury Secretary Steven Mnuchin said he’s all but ruled out letting them exit U.S. control before he steps down, leaving it to the Biden administration to decide the fates of the mortgage giants.

In a Wall Street Journal interview, Mnuchin said he’s not going to pursue any actions that put taxpayers at risk or limit consumers’ access to home loans. His decision prevents a major policy change in the last days of the Trump administration that risked disrupting the $10 trillion mortgage market.