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White House seen unveiling Frannie plan after Labor Day - WSJ

Aug. 22, 2019 9:11 AMFederal National Mortgage Association (FNMA)FMCCBy: Liz Kiesche, SA News Editor

Fannie Mae (OTCQB:FNMA) rises 3.5% and Freddie Mac (OTCQB:FMCC) gains 0.8% in premarket trading after the Wall Street Journal reports that the Trump administration is preparing to release soon after Labor Day its long-awaited plan to return the two government-sponsored enterprises to private shareholder ownership.
The two mortgage-insurance giants were taken under government control during the financial crisis to prevent their collapse; for years, Freddie and Fannie's excess capital has been swept to the Treasury Department as dividends.
The plan is expected to be a version of "recap and release," which will make sure that the firms have enough capital to absorb loan losses in future housing downturns, the WSJ reported, citing people familiar with the matter.
The outline isn't expected to provide an details for initial public offerings.
Congress, though, could enact a more fundamental overhaul of the GSEs before the administration's plan takes effect.
Freddie has paid ~$120B and Fannie has paid ~$181B to the Treasury in the years since its came under government conservatorship.

https://seekingalpha.com/amp/news/3493967-white-house-seen-unveiling-frannie-plan-labor-day-wsj