Despite heavy lobbying by large banks for the multi-guarantor model of GSE reform, Don Layton joins the growing crowd of pundits who advocate for managing Fannie and Freddie as public utilities.
The bureau’s proposed rulemaking could apply to nearly a third of the mortgage loans purchased by the GSEs. Industry observers wait to see if it impacts access to credit for low- and mid-income borrowers.
Industry observers worry that FHFA’s failure to complete its final capital rule, and Treasury’s delay releasing its plan for housing-finance reform, may push the end of the sweep into next year.
Even as FHFA replaces its current ARM index with one created by Freddie Mac, Freddie and Fannie endorse a new SOFR index touted by the Fed as a replacement for LIBOR.
Director Mark Calabria’s decision to reverse former acting Director Joseph Otting’s reversal of a Mel Watt-era decision to defend the constitutionality of the FHFA structure catches GSE observers by surprise.
It’s only a matter of time before the Treasury Department unveils its GSE re-form blueprint to White House insiders. But which advisory firm will assist Treasury in selling a new class of Fannie/Freddie stock to the public?
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