Officials testifying before Congress to defend plan to end government control of two giant mortgage finance companies

September 10, 2019 at 1:30 p.m. | Updated September 10, 2019 at 12:26 p.m.

by Associated Press

In this Spet. 9, 2019, photo, Treasury Secretary Steve Mnuchin speaks to reporters outside the West Wing of the White House in Washington. Trump administration officials are coming before Congress to defend their plan for ending government control of Fannie Mae and Freddie Mac, the giant mortgage finance companies that nearly collapsed in the financial crisis 11 years ago and were bailed out at cost to taxpayers of $187 billion. Treasury Mnuchin and Housing and HUD Secretary Ben Carson are testifying Sept. 10 before the Senate Banking Committee on the plan for returning Fannie and Freddie to private ownership. (AP Photo/Andrew Harnik)
In this Spet. 9, 2019, photo, Treasury Secretary Steve Mnuchin speaks to reporters outside the West Wing of the White House in Washington. Trump administration officials are coming before Congress to defend their plan for ending government control of Fannie Mae and Freddie Mac, the giant mortgage finance companies that nearly collapsed in the financial crisis 11 years ago and were bailed out at cost to taxpayers of $187 billion. Treasury Mnuchin and Housing and HUD Secretary Ben Carson are testifying Sept. 10 before the Senate Banking Committee on the plan for returning Fannie and Freddie to private ownership. (AP Photo/Andrew Harnik)

WASHINGTON (AP) - Trump administration officials are going before Congress to defend their plan for ending government control of Fannie Mae and Freddie Mac. The giant mortgage finance companies nearly collapsed in the financial crisis 11 years ago and were bailed out at a cost to taxpayers of $187 billion.

Treasury Secretary Steven Mnuchin (mih-NOO'-shin) and Housing and Urban Development Secretary Ben Carson are testifying Tuesday before the Senate Banking Committee on the plan for returning Fannie and Freddie to private ownership.

Fannie and Freddie have become profitable again. Their profits would no longer go to the Treasury but would be used to build up their capital bases as a cushion against possible future losses.

Democratic members of the banking panel including Sens. Sherrod Brown of Ohio and Elizabeth Warren of Massachusetts have condemned the plan.

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