Proposed legislation would allow Fannie Mae and Freddie Mac to purchase and securitize residential construction loans, provided those projects meet certain affordability and safety and soundness requirements.
In a scenario that Fannie and Freddie exit conservatorship, Urban Institute analysts believe that the courts will allow the uniform MBS to persist, even though it requires coordination between the GSEs that could invite antitrust litigation.
Proposed changes would revamp the treatment of “Indian areas” and rural agricultural workers, along with altering the method of calculating area median income.
Despite the controversy surrounding his investigations into political enemies of the president, FHFA Director Bill Pulte is asking Congress for enforcement authority over suspected cases of fraud.
Some economists suggest Fannie and Freddie should accept mortgages that include a modest prepayment penalty as a way to keep residential mortgage rates lower. But that would be a political challenge.
In a brief appearance on a show hosted by Steve Bannon, FHFA Director Bill Pulte suggested that part of the reason he was confirmed for the position was to address home prices.
Trump budget ignores GSE reform; Morningstar DBRS affirms AAA ratings on GSEs; Vice Capital an early adopter of new low loan balance payment categories; Fannie to simplify income eligibility calculations for some LLPA waivers.
Conservative critics of the housing-finance system say preserving the status quo is more likely than a release from conservatorship or a government monopoly.
By allowing the FHLBanks to once again provide credit enhancement for tax-exempt bonds, the bill’s sponsors hope it will reduce financing costs for community development in smaller municipalities.
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