FHFA: Congress to decide Frannie fate

Reiterating what his boss – FHFA Director Mel Watt – has already said, the FHFA’s Bob Ryan tells Bloomberg it’ll have to be Congress, not the executive branch that frees Fannie Mae (OTCQB:FNMA +0.4%) and Freddie Mac (OTCQB:FMCC +0.4%).

Ryan acknowledges that the FHFA does have the administrative powers to untether the GSEs, but has no plans on using them, even if the White House requests.

Ryan: “You have to start with the director’s unequivocal statement that housing-finance reform is the purview of Congress … An administrative solution to housing-finance reform to take the enterprises out of conservatorship would be inconsistent with that.”

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