Regulator directs Fannie Mae, Freddie Mac to merge some operations

The Federal Housing Finance Agency, the regulator overseeing Fannie Mae and Freddie Mac, on Monday said the agency would begin forming a company that would consolidate some of the "back-office" functions currently replicated individually by each firm, the Wall Street Journal reported.

The company would have its own chief executive and board and for now would be jointly owned by Fannie and Freddie, Edward DeMarco, acting director of the FHFA, said in a speech Monday before the National Association…