Lenders are concerned that the incoming Trump administration might reinstate limits on GSE acquisitions, repeating an action from the first Trump administration.
Regulators in some states controlled by Democrats are poised to increase their oversight of consumer protection laws as the CFPB’s focus is expected to shift under the incoming Trump administration.
The hedge fund billionaire predicts Treasury will write off its senior preferred shares in the GSEs and exercise its warrants for 80% of their common stock.
A report by the non-partisan Congressional Budget Office concludes that Fannie Mae and Freddie Mac are more likely to hold successful public stock offerings now than when Trump first took office in 2020.
Though many financial companies have significant concerns about actions by the CFPB, the reforms brought in by the bureau are generally preferred, according to industry stakeholders.
The final rule is at risk of being overturned by the Congressional Review Act under the incoming Trump administration. Trade groups representing banks have also filed a lawsuit against the final rule.
Automatically increasing the caps for loans to be eligible for sale to the GSEs increases access to mortgage credit, but at the expense of increasing home prices.
Going by Trump’s first term, the CFPB is expected to continue to regulate by enforcement, but isn’t likely to expand its jurisdiction into questionable areas.
While major rulemakings will pause until a new presidential administration takes over, work will continue on proposed rules, according to regulatory agency leaders.