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President Trump signed a memorandum on federal housing finance Wednesday that starts the process of removing mortgage guarantors Fannie Mae and Freddie Mac from government oversight.

The backdrop: The two government-sponsored enterprises have been under conservatorship since 2008, when they faced collapse during the subprime mortgage crisis.

What they're saying: "The lack of comprehensive housing finance reform since the financial crisis of 2008 has left taxpayers potentially exposed to future bailouts, and has left the Federal housing finance programs at the Department of Housing and Urban Development potentially overexposed to risk and with outdated operations," the White House said in a statement.

  • California-based asset management firm PIMCO has spoken out strongly against such action in the past, arguing as "one of the largest participants in the mortgage-backed securities (MBS) market," that the government should largely leave the current system in place.

But analysts at Goldman Sachs said in a note Thursday the memo "should have only a limited effect on the housing market."

  • "First, we are somewhat skeptical that sweeping changes will be implemented quickly, as the Treasury and FHFA face some constraints on their authority."
  • "Second, we expect the Trump Administration to proceed cautiously to avoid disrupting the mortgage and housing markets ahead of the 2020 presidential election."

Go deeper: The financial crisis executives who got away

Go deeper

AOC and Ilhan Omar want to block Biden’s former chief of staff

Reps. Ilhan Omar and Alexandria Ocasio-Cortez. Photo: Brendan Smialowski/Getty Images

Reps. Alexandria Ocasio-Cortez and Ilhan Omar are boosting a petition against Joe Biden nominating his former chief of staff to a new role in his administration, calling Bruce Reed a "deficit hawk” and criticizing his past support for Social Security and Medicare cuts.

Why it matters: Progressives are mounting their pressure campaign after the president-elect did not include any of their favored candidates in his first slate of Cabinet nominees, and they are serious about installing some of their allies, blocking anyone who doesn't pass their smell test — and making noise if they are not heard.

2 hours ago - Podcasts

Butterball CEO Jay Jandrain talks turkey

Butterball estimates that it sells one out of every three Thanksgiving turkeys, but knows that this year's celebrations will be different than years past.

Axios Re:Cap talks with the turkey giant's CEO Jay Jandrain about what people are buying, what they're asking the "Turkey Talkline" and what the pandemic has meant for his business.

Biden introduces top national security team

President-elect Joe Biden's nominee for Secretary of State Antony Blinken spoke Tuesday at an event introducing the incoming administration's top national security officials, where he told the story of his stepfather being the only one of 900 children at his school in Poland to survive the Holocaust.

What they're saying: "At the end of the war, he made a break from a death march into the woods in Bavaria. From his hiding place, he heard a deep rumbling sound. It was a tank. But instead of the iron cross, he saw painted on its side a five pointed white star," Blinken said.