Recently, we learned from the Congressional Budget Office that, “…Fannie Mae and Freddie Mac are now owned and operated by the federal government…”
To add to that view, the US Treasury Department via their CFPB states, “Historically, they were (emphasis mine) private companies operating with government permission and under government regulation. In late 2008, following the financial crisis, the U.S. government took over operations at both companies.”
However, the FHFA Office of Inspector General disagrees with the CBO and Treasury:
“Is a conservatorship temporary or permanent?
There is no inherent duration in a conservatorship. The organic statute or order creating the conservatorship defines its goals, operations, and conditions for existence, differing from the FDIC receivership context, which does not anticipate a return to business. In this case, the Federal Housing Finance Agency has stated that the conservatorship will terminated upon successful completion of its plan to restore the companies to safe and solvent condition (“Fact Sheet – Questions and Answers on Conservatorship”. http://www.fhfa.gov/Media/PublicAffairs/Pages/Fact-Sheet-Questions-and-Answers-on-Conservatorship.aspx)”
My bet is on Director Watt. He, along with the leadership of Fannie and Freddie appear poised to “successfully complete the plan” so that they can “terminate the conservatorship.” Momentum is shifting in Mr. Watt’s direction.