If billionaire Mike Bloomberg starts looking like a front-runner in the 2020 presidential elections, putting out stock offerings on Fannie Mae and Freddie Mac could prove difficult.
Concerned about relaxed appraisal standards for mortgage originations, two senior members of the House Financial Services Committee want the Government Accountability Office to conduct a study.
Fannie Mae reported ”fair value losses” of $2.2 billion for 2019. That’s compared to a $1.1 billion gain in 2018, and a $1.2 billion loss in 2017. Volatility in the company’s income reflects its hedging operations.
Just like previous budgets proposed by President Trump, the 2021 version stands little chance of getting passed by Congress. But it does provide a win-dow into the administration’s priorities.
The agency has picked Houlihan Lokey Capital to help it identify any financial, regulatory or market risks in its path to take Fannie Mae and Freddie Mac out of conservatorship.
Director Mark Calabria believes the revised structure and new hires will ensure FHFA continues to protect taxpayers from future bailouts and delivers on its obligation to create a competitive, liquid, efficient and resilient housing-finance market.