"Today our primary focus is supporting Fannie Mae and Freddie Mac in their current form as they carry out their important mission,'' Paulson said in a statement today in Washington. "We are maintaining a dialogue with regulators and with the companies.''
Paulson's comments signal the administration's intention to keep Fannie Mae and Freddie Mac as shareholder-owned companies, rather than placing them under government control, wiping out equity holders.
Washington-based Fannie Mae and McLean, Virginia-based Freddie Mac own or guarantee almost half of the $12 trillion in U.S. home loans outstanding. Their shares have slumped this year on concern the firms don't have enough capital to offset losses from the mortgage meltdown.
"We appreciate Congress' important efforts to complete legislation that will help promote confidence in these companies,'' Paulson also said.
The Office of Federal Housing Enterprise Oversight, the companies' main regulator, "will continue to work with the companies as they take the steps necessary to allow them to continue to perform their important public mission,'' he said.