GSEs delay UCD timeline; updates on Pulte’s legal battles with Trump opponents; Fed’s MBS holdings continue to dwindle; Opendoor to partner with Fannie’s Title Acceptance Program.
Analysts are increasingly skeptical that the Trump administration will follow through on plans to recapitalize and release the GSEs. Some seek broader reform.
Although neither housing EO released last week by President Trump mentions them by name, it’s clear Fannie Mae and Freddie Mac will have a hand in implementing the proposed policy changes.
Since the Iran war started, interest rates have returned to where they were when President Trump directed the GSEs to purchase $200 billion in MBS and most analysts say GSE reform is now off the table.
A new executive order directs federal agencies to consider changing several major mortgage regulations in part to increase mortgage lending by smaller banks. Consumer advocates raised alarms.
Fannie Mae’s retained mortgage portfolio surpassed the size of Freddie Mac’s in January, a first since 2022 as Fannie is adding to its MBS holdings at a faster rate than Freddie.
The Federal Housing Finance Agency said other agencies are already responsible for enforcing fair lending and fair housing laws. However, critics argued that the administration has been steadily eviscerating the enforcement arms of those agencies as well.