Trump allies are working on plans to privatize Fannie and Freddie, WSJ reports

(Reuters) - Allies of Republican U.S. presidential candidate Donald Trumps and bankers have been discussing plans on ending U.S. government control of the mortgage-finance firms Fannie Mae and Freddie Mac if he wins the election, the Wall Street Journal reported on Thursday.

Trump confidants including former National Economic Council director Larry Kudlow and former White house presidential personnel office director John McEntee are among those involved in the talks, the Journal reported.

Fannie Mae, Freddie Mac and the Trump campaign didn't immediately respond to Reuters' requests for comments.

Trump allies have discussed having the Treasury Department partially back some part of Fannie and Freddie loans through a so-called standby guarantee, the report said.

One path to privatization includes assessing bypassing congressional approval and instead proceeding through the Federal Housing Finance Agency, which oversees Fannie and Freddie, and the Treasury Department, the report said.

There have been attempts previously to free the government's control over Fannie and Freddie, including some made under Trump, which were all unsuccessful.

Fannie and Freddie were created by Congress and operate as for-profit corporations with private shareholders, with the mission of expanding the national home lending market by buying home loans from private lenders and repackaging them as mortgage-backed securities.

(Reporting by Disha Mishra in Bengaluru; Editing by Kim Coghill)