The FHFA noted that its OIG budget was nine times larger than the average across federal agencies. Critics say the cuts are intended to protect FHFA Director Bill Pulte and President Trump.
Jon Oksenholt’s plan would create a parent company that would own the GSEs and Common Securitization Services but allow them to keep their charters and operate independently.
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.