Fannie & Freddie’s Future: MBA’s Push for a Responsible GSE Exit

Fannie & Freddie’s Future: MBA’s Push for a Responsible GSE Exit

Hi, I’m Adam DeSantis. This is the Mortgage Minute, the latest news from the Mortgage Bankers Association. Last week, MBA held a briefing at the US Capitol Visitor Center for House and Senate staffers to discuss the potential for next steps by Congress and the Trump administration on key secondary market policies, including the potential for Fannie Mae and Freddie Mac to be released from conservatorship, MBA’s presentation deck outlined our recommendations for a responsible release from conservatorship, including establishing an explicit backstop on the GSEs mortgage backed securities and regulatory mandates for FHFA to maintain a level playing field for all lenders, regardless of size or business model. Why are we discussing this now? President Donald Trump’s FHFA nominee, Bill Pulte, if confirmed, would become the next conservator of the GSEs and, as regulator, be charged with maintaining the safety and soundness of the GSEs. He could also potentially be tasked with working with the Trump Treasury Department and Congress to chart a path to an exit from conservatorship. MBA will continue to advocate aggressively that any release of the GSEs avoid Market disruption by focusing on critical core principles developed by NBA’s Board Task Force, including an explicit, fully paid forward government guarantee on those mortgage backed securities. That’s it for this week. Thank you for listening.