Although the report notes that the administration’s preference is for legislative reform, the plan emphasizes that reform “should not and need not wait on Congress.”
The trade group last week said it would not support releasing Fannie and Freddie from conservatorship unless Congress first creates an explicit gov-ernment guarantee for their mortgage-backed securities.
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.