Senator Asks FHFA to End Treasury Conservatorship of Fannie Mae (FNMA), Freddie Mac (FMCC)

Fannie Mae (OTCBB: FNMA) and Freddie Mac (OTCBB: FMCC) are gaining Wednesday amid reports that one Senator is looking for the FHFA to end oversight of the mortgage-finance duo.

The WSJ reported that South Dakota Senator Tim Johnson (D) called on Federal Housing Fiance Agency Director Melvin Watt aiming to engage with the Treasury Department in talks to end the conservatorship of Fannie and Freddie.

During a Senate banking hearing on Tuesday, Johnson commented, Everyone agrees that conservatorship cannot continue forever, so I hope my colleagues will keep working toward a more certain future for the housing market ... However, if Congress cannot agree on a smooth, more certain path forward, I urge you, Director Watt, to engage the Treasury Department in talks to end the conservatorship.

Fannie and Freddie have been in conservatorship since the 2008 housing crisis. The U.S. provided about $188 billion of aid to both and now profits are swept directly to the Treasury.

Shares of Fannie and Freddie are up about 6 to 7 percent today.

You May Also Be Interested In

• Fannie Mae Priced $509.1 Million Multifamily DUS REMIC (FNA 2024-M4) Under Its GeMS Program
• Super Micro Computer (SMCI) Falls 6%
• Recent IPO Top Wealth Group (TWG) trading 90% higher