WASHINGTON—Mortgage giants Fannie Mae and Freddie Mac have hired two of the nation's top investment banks to serve as financial advisers as the two government-sponsored enterprises prepare to recapitalize and eventually exit conservatorship.

Fannie has enlisted Morgan Stanley and Freddie has hired JPMorgan Chase to assist the GSEs in developing plans to boost capital, evaluating market impacts and timing and analyzing valuation, Fannie and Freddie announced Monday.

The Federal Housing Finance Agency’s own financial adviser, investment bank Houlihan Lokey, will then assist in evaluating those plans with the aim of returning Fannie and Freddie to the private market and facilitate the roadmap out of government control.

“Today’s announcement marks another important step toward a responsible exit from conservatorship, and we look forward to working with FHFA, Treasury, and Morgan Stanley to chart a strong course forward for Fannie Mae,” said Hugh Frater, president and CEO, in a statement.

Fannie said it had chosen Morgan Stanley as its adviser for the investment bank’s “demonstrable qualifications and expertise in managing such complex matters,” while Freddie said it had selected JPMorgan Chase after receiving competitive offers to its request for proposals in May.

“We look forward to working with JPMorgan to continue meeting the milestones necessary to begin our new chapter as soon as possible,” said Freddie Mac President and CEO David Brickman in a statement.

Jamie Dimon, JPMorgan Chase's chairman and CEO, added that the bank was pleased to have been chosen.

“We look forward to working side-by-side with Freddie Mac on this historic assignment in the months ahead,” he said in a statement.