Trump calls for end of conservatorship of Fannie Mae, Freddie Mac

March 27 (UPI) -- President Donald Trump on Wednesday called on his administration to develop policy for ending the conservatorship of Fannie Mae and Freddie Mac a decade after the housing crisis put the mortgage giants under federal care.

The president signed a memo telling the Housing and Urban Development, and Treasury departments to craft legislative options for housing finance reform.

Trump seeks to preserve Americans' ability to obtain home mortgages at a 30-year fixed rate, but the White House criticized the mortgage companies for using outdated business processes and systems.

"Sustainable homeownership is the benchmark of success for comprehensive reforms to government housing programs," a statement from the White House said.

Earlier this month, the Government Accountability Office warned that Fannie Mae and Freddie Mac, along with other government agencies, are exposing taxpayers to potential losses in the trillions of dollars.

The federal government took control of Fannie Mae and Freddie Mac during the financial crisis of 2008. This means the government, thus taxpayers, is responsible for all losses incurred.

Now, about 70 percent of loans are supported either directly or indirectly by the federal government.