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Treasury Secretary Steven Mnuchin said President Donald Trump "approved" the Treasury's plan to reform mortgage giants Fannie Mae and Freddie Mac.
Mnuchin appeared before the Senate Banking Committee on Tuesday and declined to confirm this information. He then confirmed this information.
Secretary Mnuchin also said negotiations were underway to end the sweeping of profits by Fannie Mae and Freddie Mac.
"We are actively negotiating an amendment to try to fix it by the end of the month," he said in an interview for CNBC's Squawk Box.
The Treasury released a plan last week to recapitalize the two companies, which currently support about half of the US $ 10 trillion mortgage market, and release them from government oversight. The agreement is being negotiated with their regulator, the FHFA. The Treasury plan would require some kind of payment for the government to continue to benefit from its support.
Mnuchin said, "What we are negotiating for is to ensure that taxpayers receive compensation for this."
Housing reform is accelerating rapidly in Congress, and Secretary of State Mnuchin acknowledged that "bipartisan support was widespread for many problems, such as affordable housing."
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