** Over-the-counter shares of Fannie Mae FNMA.PK and Freddie Mac FMCC.PK were down sharply in Fri afternoon trading after Barron's reported that Bill Pulte, the director of the Federal Housing Finance Agency which regulates the pair, says they are likely to remain in conservatorship
** Fannie Mae was last down 7.5%, while Freddie Mac was last down 3.6%
** The shares rose in late May after U.S. President Donald Trump said he was working on taking the housing giants public
** Fannie Mae and Freddie Mac have been under the U.S. government's control since 2008 after they suffered heavy losses during the subprime mortgage crisis
(Reporting by Caroline Valetkevitch)
((caroline.valetkevitch@thomsonreuters.com))
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