As we noted last week, Secretary Mnuchin told Senate Banking that he has the authority to restructure Fannie and Freddie without any change in law.  This created considerable consternation, but Mnuchin stayed mum on what he could do were he to decide he wanted to.  In short, it’s a lot.  Current law gives FHFA considerable discretion to redesign Fannie and Freddie into limited-life regulated entities (LLREs).

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