The Wall Street Journal reports that the terms of the conservatorship of Fannie Mae and Freddie Mac will not be fundamentally restructured under the Trump administration. Instead, on January 14 the Department of Treasury and the Federal Housing Finance Agency announced a more modest amendment to the Preferred Stock Purchase Agreements. These modest changes—which will allow the companies to retain more of their earnings, thereby boosting their capital reserves—come after policymakers urged Treasury Secretary Mnuchin to avoid any large-scale and abrupt changes that would negatively impact the market. This move also comes after SFA sent a letter to Secretary Mnuchin urging to exercise prudence in any action regarding the conservatorship. In response to this announcement, SFA released a statement recognizing the work that has been done thus far and committing to work with the Biden administration and Congress to address outstanding issues in our nation’s housing finance system.

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