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Trump Team’s Final Act on Fannie-Freddie Leaves Fates to Biden

  • Mnuchin plans to let mortgage giants hold much more capital
  • Treasury opposes reducing $220 billion U.S. stake in companies
Updated on

The Trump administration is poised to unveil last-minute changes to Fannie Mae and Freddie Mac that would allow the mortgage giants to retain significantly more capital, while leaving many of the thorniest issues on releasing the companies from federal control to President-elect Joe Biden, said four people familiar with the matter.

The revisions -- expected to be announced as soon as Thursday -- would modify the contracts that govern taxpayers’ backstopping of Fannie and Freddie. They fall far short of freeing the companies from their government conservatorships, something Treasury Secretary Steven Mnuchin vowed to accomplish after President Donald Trump’s 2016 election win.