November 30, 2016 / 3:30 PM / in a year

CORRECTED-UPDATE 1-Fannie, Freddie need to get out of government ownership -Mnuchin

(Corrects magnitude of share price move in final paragraph)

Nov 30 (Reuters) - Mortgage finance companies Fannie Mae and Freddie Mac should no longer be owned by the U.S. government, Treasury Secretary nominee Steven Mnuchin said on Wednesday.

His comments sent shares of the two government-sponsored enterprises to their highest levels since September 2014. Both companies have been in U.S. government conservatorship since the 2008 financial crisis.

The risk premiums, or yield spreads on Fannie and Freddie’s bonds over U.S. Treasuries held steady from late on Tuesday.

Mnuchin delivered the remarks in an interview on Fox Business Network, and Bloomberg reported them.

“People don’t expect the government to just step away from the GSEs,” said Larry Milstein, head of government and agency trading at R.W. Pressprich & Co in New York.

Fannie shares were last up 32 percent at $4.08, while Freddie rose 31 percent to $3.99. (Reporting by Dan Burns and Richard Leong; Editing by Lisa Von Ahn)

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