Nomura Instinet analyst Matthew Howlett reiterates Buy ratings on shares of both Fannie Mae (FNMA) and Freddie Mac (FMCC). On Friday, the Treasury and Federal Housing Finance Agency issued a joint response to Senator Elizabeth Warren and a number of Democrats on the Senate Banking Committee relating to a Dec. 17 letter regarding specific details on plans to reform the government sponsored entities, Howlett tells investors in a research note. The analyst believes the FHFA and Treasury are ready to act outside of Congress and remove the GSEs from conservatorship via a consent decree once the GSEs achieve some minimum level of capital. He also believes the Treasury is open to amending the Preferred Stock Purchase Agreements, which would enable the GSEs to raise outside capital.