Hedge funds, such as Paulson & Co. and Perry Capital, that have bet big on Fannie Mae and Freddie Mac are lobbying heavily to lift government controls on the mortgage companies, according to The Wall Street Journal's Joe Light. (Subscription required.)

Those funds and others bought millions of shares of the companies’ preferred and common stock in hopes of cashing in as they regained their independence following a $187.5 billion taxpayer bailout. But they have been stymied by government policy that for the past four years has sent nearly all the companies’ profits to the U.S. Treasury.

The effort to end the government's hold on Fannie and Freddie comes from a lot of places.

The lobbying effort has run the gamut from campaign donations to giving cash to minority advocacy groups that voice support for Fannie and Freddie, according to public records and people familiar with the campaign.

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