Antonio Weiss, counselor to the secretary of the Treasury Department, cautioned that any reduction to the corporate tax rate could prompt a draw from Treasury funds by the GSEs.
Legislative reform of the government-sponsored enterprises doesn’t appear to be a high priority for Republican lawmakers, but President-elect Donald Trump’s plans to reduce the corporate tax rate could inadvertently prompt some GSE reform activity, according to industry analysts. As of the end of the third quarter of 2016, Fannie Mae and Freddie Mac had a combined $53.80 billion in deferred tax assets. The DTAs result from differences between the carrying amounts of existing assets and liabilities under generally accepted accounting principles and their respective tax bases. The DTAs are...
Thanks to stellar fourth quarter MBS issuance – coupled with higher interest rates at Dec. 31 – Fannie Mae and Freddie Mac are likely to report their best quarterly earnings of 2016, money that will go directly into the U.S. Treasury. According to interviews conducted by Inside Mortgage Finance this week, the general consensus among observers is that the two government-sponsored enterprises will post a combined profit north of $5.5 billion. In 2016, the two guaranteed...
Is this the last week on the job for CFPB Director Richard Cordray? Speculation is suddenly growing fast and furiously that the director’s time is about over, that President-elect Trump will use his signature line from his Apprentice television show, “you’re fired” shortly after he is inaugurated on Jan. 20, 2017. What took this once-peripheral issue abruptly into overdrive are press reports that retired U.S. Congressman Randy Neugebauer, R-TX, met with the president elect at Trump Tower in New York City last week to discuss becoming the new head of the CFPB. Neugebauer, the former chairman of the House Financial Services Committee’s Financial Institutions and Consumer Credit Subcommittee, reportedly has not been offered the job, as of press time, and ...
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