Housing finance stakeholders continue to debate whether the Trump administration can safely release Fannie and Freddie from conservatorship.

President Trump said he’s seriously considering letting Fannie Mae and Freddie Mac go public. Industry participants are now waiting for specific details.

Critics say capital is not necessarily the main impediment to ending the conservatorship. A bigger problem is the lack of planning on what the GSEs should look like after they exit.

Like most GSE reform plans, the hedge funder’s plan to privatize Fannie and Freddie starts with Treasury writing down its senior preferred shares and FHFA sharply reducing the capital requirements for the GSEs.

Smaller shops may support an end to the GSE conservatorships, but only if it’s done in a way that preserves pricing parity, avoids additional charters and maintains the cash window.

Executives from Annaly and Two Harbors worry that ending the conservatorships of the GSEs could fundamentally change the buyer base for their mortgage-backed securities.

Would exiting conservatorship expose Fannie and Freddie to more or less risk from political meddling?

Rejiggering the Rube Goldberg machine of housing finance will require careful thought and timing. Unless Trump does it with an executive order.

FHFA removed reference to DEI on the GSE scorecard. Are SPCPs next on the chopping block?

Responding to written questions from the Senate Banking Committee, Trump’s new Treasury secretary gave the mortgage industry limited insight into his views on GSE reform.