We continue to hear reports that Freddie Mac may have settled on a choice for a new CEO. Back in September, the GSE named David Brickman — just promoted to the role of president from executive vice president/head of multifamily — as a possible internal candidate to succeed retiring CEO Don Layton.
Fannie Mae and Freddie Mac reported lower earnings for the fourth quarter of 2018, the victims of a slowing mortgage market and, ironically, lower interest rates at yearend compared to Sept. 30, which resulted in hedging losses.
In a remarkable political balancing act during his confirmation hearing Thursday morning, Mark Calabria, President Trump’s nominee to head the Federal Housing Finance Agency, told Senate Banking Committee members they need not worry about his history of controversial and inflammatory remarks on FHFA and the government-sponsored enterprises.
Sen. Mike Crapo, R-ID, chair of the Senate Committee on Banking, Housing, and Urban Affairs, stirred the housing-finance reform pot last week, releasing a plan to bring Fannie Mae and Freddie Mac out of conservatorship.
The road to reforming Fannie Mae and Freddie Mac took another left turn this week with Treasury Secretary Steve Mnuchin applauding Congressional efforts on the initiative but then declaring, if need be, Treasury would go it alone.
The Trump administration pulled an about-face on reform of the government-sponsored enterprises, with the White House declaring mid-week that it will work with Congress on a legislative solution to Fannie Mae and Freddie Mac.
The Federal Housing Finance Agency, which regulates Freddie Mac and Fannie Mae, last week said it will no longer defend its single-director leadership structure.
The Treasury Department continues to work on administrative changes for Fannie Mae and Freddie Mac that can be implemented by the Federal Housing Finance Agency, but a blueprint won’t see the light of day until sometime in the spring, if then.
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