Mnuchin: GSEs’ Conservatorship Remains Until Housing Finance Is Reformed

Jun 10, 2019

Treasury Secretary Steven Mnuchin has stated the government-sponsored enterprises (GSEs) will remain under federal conservatorship until there are legislative changes to the federal housing finance system.

In an interview with Bloomberg, Mnuchin insisted that Fannie Mae and Freddie Mac will not be released, even if they are able to strengthen their capital buffers in advance of terminating the conservatorship that began in September 2008.
“What we’re not going to do is business as usual with no changes, just re-capitalize them and float them,” said Mnuchin. “There needs to be housing reform as part of this.”

Mnuchin’s comments rattled the over-the-counter market where the GSEs’ shares are traded. As of 9:46 a.m. this morning, shares of Fannie Mae dropped 15 percent to $2.70 while Freddie Mac shares slid 15 percent to $2.61.

The focus on getting a legislative plan first would also seem to contradict recent news reports in the Wall Street Journal and Fox Business Network that cited anonymous sources insisting the Trump Administration has been in discussion with Wall Street bankers on a public offering for Fannie Mae and Freddie Mac in the aftermath of the end of their federal conservatorship. The two reports stated a 2020 date was being considered and the size of the public offering could exceed $100 billion, but at this point it may seem unlikely in the face of the partisan divide in Congress.

About the author

Phil Hall

Link copied

Published

Jun 10, 2019

Industry News

Newfi And Addy AI Announce Partnership

Newfi and Addy AI today announced a collaboration focused on the continued evolution of artificial intelligence in mortgage lending

Newfi and Addy AI today announced a collaboration focused on the continued evolution of artificial intelligence in mortgage lending.Newfi has built innovative lending products and a modern approach to the mortgage market. As the industry evolves, the company continues to exp...

Analysis and Data

Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

The typical down payment fell 9% from a year ago, while shifting market conditions are giving originators different affordability conversations across the country

Homebuyers are putting less money down than they were a year ago, another sign that increased inventory and greater negotiating room are changing the purchase market.The typical down payment fell to $27,100 in the second quarter of 2026, the lowest second-quarter dollar amou...

Oct

Denver, CO

More from

Industry News

CHLA: More Freddie Mac MBS Buying Could Narrow Mortgage Spreads

Trade group estimates greater Freddie participation could compress spreads another 10 to 12 basis points as Fannie has taken the lead in GSE mortgage-bond buying

Industry News

Sep 23, 2026

Early Loan-Limit Race Splits Into Three Tiers

Lenders are now offering $845,000, $847,440, or $850,000 before FHFA sets the official 2027 limits

Industry News

Sep 23, 2026

Better, Garg Clash Over Claimed 46% Shareholder Support

Better disputes its former CEO’s preliminary consent count as the two sides trade accusations and an Oct. 2 target date approaches

C-Suite Strategies

Sep 23, 2026

Fannie Changes How Rent From A Former Home Counts

Fannie now prohibits leases for departing residences and permits market-analysis tools instead of Form 1007, creating a key documentation difference from Freddie Mac

Regulation and Compliance

Sep 22, 2026

MPF Expands Eligibility For Manufactured And Renovation Loans

The Mortgage Partnership Finance Program has expanded MPF Traditional eligibility for affordable loans, manufactured homes, renovations, and lender-funded assistance

Industry News

Sep 22, 2026