The Federal Housing Finance Agency, the federal regulator and conservator of government-sponsored mortgage giants Fannie Mae and Freddie Mac, has delivered a strategic plan for the two that envisions them becoming smaller and less relevant to the secondary mortgage market.

"With the conservatorships operating for more than three years and no near-term resolution in sight, it is time to update and extend the goals and directions of the conservatorships," wrote FHFA acting director Edward DeMarco in a Feb. 21 letter accompanying the plan. "FHFA is contemplating the next steps to build an infrastructure for the secondary mortgage market that is consistent with existing policy proposals and will support any outcome of the leading legislative proposals," DeMarco added.

The goals of the agency's plan include building new infrastructure for the secondary mortgage market of the future along with taking steps to move more of the mortgage business away from the GSEs. The plan also envisions the agency continuing its efforts at foreclosure mitigation.