Trump Allies Plan to End Government Control of Fannie Mae and Freddie Mac

Allies of U.S. presidential candidate Donald Trump and financial experts are discussing plans to end government control over mortgage-finance giants Fannie Mae and Freddie Mac if he wins upcoming elections. Ideas include utilizing the Treasury Department and bypassing congressional approval for privatization. Previous attempts under Trump were unsuccessful.

Allies of Republican U.S. presidential candidate Donald Trump and financial experts are exploring plans to end U.S. government control of mortgage-finance firms Fannie Mae and Freddie Mac if he wins the election, the Wall Street Journal reported on Thursday.

Trump confidants, including former National Economic Council director Larry Kudlow and former White House personnel office director John McEntee, are involved in the discussions. The Trump campaign, as well as Fannie Mae and Freddie Mac, have not responded to Reuters' requests for comments.

One proposal under consideration involves the Treasury Department partially backing some Fannie and Freddie loans with a standby guarantee. This path to privatization may bypass congressional approval by proceeding through the Federal Housing Finance Agency (FHFA) and the Treasury Department. Similar attempts during Trump's tenure were unsuccessful.

Created by Congress, Fannie Mae and Freddie Mac operate as for-profit corporations with private shareholders, with a mission to expand the nation's home lending market by purchasing home loans from private lenders and repackaging them as mortgage-backed securities.

(With inputs from agencies.)