Even though the White House is trying to use Fannie Mae and Freddie Mac to prop up the residential mortgage market — including massive loan modifications — their regulator issued a new "Five Year Plan" on July 9 that leaves in place the targeted goal of shrinking each of their portfolios to $250 billion. At the end of May the two, together, boasted $1.6 trillion in on-balance sheet assets. The Federal Housing Finance Agency's five-year plan offers no new major revelations about their future. FHFA notes that Fannie and Freddie "have not met and may continue to be unable to meet many regulatory standards." The two were taken over by the government and placed into separate conservatorships in September.
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