A Fannie Mae (FNMA) and Freddie Mac (FMCC) overhaul is now not expected to make it into this year's legislative calendar, Congressional staffers say, possibly shifting the new administration's immediate focus to allowing the mortgage financing institutions' to rebuild depleted capital, Reuters reports.

Both stocks surged late in 2016 after then Treasury Secretary nominee Steve Mnuchin said the companies that have been in government conservatorship since the 2008 financial crisis should be privatized, Reuters added.