Jon Oksenholt’s plan would create a parent company that would own the GSEs and Common Securitization Services but allow them to keep their charters and operate independently.
In a scenario that Fannie and Freddie exit conservatorship, Urban Institute analysts believe that the courts will allow the uniform MBS to persist, even though it requires coordination between the GSEs that could invite antitrust litigation.
A GSE shareholder advocate says selling rights to existing shareholders could resolve conflicting objectives that have vexed GSE reform during the Trump administration.
Some economists suggest Fannie and Freddie should accept mortgages that include a modest prepayment penalty as a way to keep residential mortgage rates lower. But that would be a political challenge.
Despite ending his long hiatus on GSE talk, Trump fails to persuade skeptics that he’s ready to take Fannie and Freddie out of conservatorship anytime soon.
After weeks of silence on the status of Fannie Mae and Freddie Mac, President Trump stirred up shareholders this weekend by bringing up the concept of a public offering at two separate events.
Industry watchers believe GSE reform is probably off the table until after the mid-term elections at least, as the administration’s focus has shifted to other priorities.
Trump budget ignores GSE reform; Morningstar DBRS affirms AAA ratings on GSEs; Vice Capital an early adopter of new low loan balance payment categories; Fannie to simplify income eligibility calculations for some LLPA waivers.