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housing finance programs at the Department of Housing and Urban Development potentially overexposed to risk and with outdated operations," the White House said in a statement.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

Updated 17 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 4 p.m. ET: 19,193,661 — Total deaths: 716,735 — Total recoveries — 11,611,029Map.
  2. U.S.: Total confirmed cases as of 4 p.m. ET: 4,918,927 — Total deaths: 160,737 — Total recoveries: 1,598,624 — Total tests: 59,652,675Map.
  3. Politics: White House recommends Trump issue executive orders on coronavirus aid.
  4. Education: Cuomo says all New York schools can reopen for in-person learning.
  5. Public health: Surgeon general urges flu shots to prevent "double whammy" with coronavirus — Massachusetts pauses reopening after uptick in coronavirus cases
  6. World: Africa records over 1 million coronavirus cases — Gates Foundation puts $150 million behind coronavirus vaccine production.

Trump: "We are going a different way" on coronavirus aid

President Trump. Photo: Jim Watsonn/AFP via Getty Images

President Trump tweeted on Friday that his administration is "going a different way" with coronavirus aid after negotiations with congressional Democrats stalled again, suggesting he will use an executive order to address stimulus spending.

What he's saying: "Pelosi and Schumer only interested in Bailout Money for poorly run Democrat cities and states. Nothing to do with China Virus! Want one trillion dollars. No interest. We are going a different way!" Trump tweeted.

Trump's swift, sweeping China offensive

Illustration: Aïda Amer/Axios

President Trump's rhetoric on China has tended to run hotter than his actions — until now.

Why it matters: Even at the height of Trump's trade war, his administration never hit China as hard, as fast, and on as many fronts as it is right now.