by Axios | 3.28.19
President Trump signed a memorandum on federal housing finance Wednesday that starts the process of removing mortgage guarantors Fannie Mae and Freddie Mac from government oversight.
The backdrop: The two government-sponsored enterprises have been under conservatorship since 2008, when they faced collapse during the subprime mortgage crisis.
What they're saying: "The lack of comprehensive housing finance reform since the financial crisis of 2008 has left taxpayers potentially exposed to future bailouts, and has left the Federal housing finance programs at the Department of Housing and Urban Development potentially overexposed to risk and with outdated operations," the White House said in a statement.
But analysts at Goldman Sachs said in a note Thursday the memo "should have only a limited effect on the housing market."
Go deeper: The financial crisis executives who got away
Written by Axios
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