The Trump Administration is putting the long-overdue reform of the government-sponsored enterprises (GSEs) on the proverbial back-burner until next year.
In an interview with Bloomberg
, Treasury Secretary Steven Mnuchin said the Administration is not planning to focus on GSE reform this year, adding that Fannie Mae and Freddie Mac were not yet in a position to be removed from their nine-year position within federal conservatorship.
“We need to fix Fannie and Freddie,” said Mnuchin, who was confirmed as Treasury Secretary
in mid-February. “Realistically, this is a 2018 issue, but we’re going to fix it and when we fix it we want to make sure we never put the taxpayers at risk.”
Mnuchin did not give a hint regarding which GSE reform solution was favored by the Administration.