Fannie Mae and Freddie Mac are set to be delisted from the New York Stock Exchange, paving the way for a broad overhaul of the large government-controlled US mortgage finance companies that have been hit by souring home loans.

The companies, which were placed under government control in 2008 and are 80 per cent owned by US taxpayers, said yesterday they would be de-listed for failing to meet minimum price guidelines.

The Obama administration has said it does not plan to tackle the issue of reforming these government-sponsored entities until next year at the earliest. That has not stopped Republican lawmakers from pushing for a break-up and eventual privatisation of the companies. Some analysts said the move to delist signalled a first step in that restructuring process.