Industry participants fleshed out details of a housing-finance reform outline at two days of Senate hearings this week. They were divided, though, on whether an overhaul of the government-sponsored enterprises is even necessary, let alone what type of reforms need to be completed.
The secondary mortgage market could be in for historic change in the wake of President Trump this week ordering the Treasury Department to end the conservatorships of Fannie Mae and Freddie Mac and come up with a new paradigm.
Any administrative overhaul of the government-sponsored enterprises could provide enough incentive for Congress to pass housing-finance reform legislation, according to industry participants.
Even though Mark Calabria backtracked on a decade of controversial comments about Fannie Mae and Freddie Mac at his confirmation hearing last week, his nomination to run the Federal Housing Finance Agency came out of the Senate Banking Committee with a 13 to 12, strictly party-line vote.
Comprehensive housing-finance reform probably isn’t in the cards anytime soon, but a plan to overhaul the GSEs is, according to industry participants. It remains unclear, though, what changes will be accomplished and whether Congress will pass legislation or if the reforms will be completed via the Federal Housing Finance Agency and the Treasury Department.
Some of the most influential trade groups in housing finance and related industries late this week went on record supporting libertarian economist Mark Calabria to be the next permanent director of the Federal Housing Finance Agency.
At his confirmation hearing before the Senate Committee on Banking, Housing, and Urban Affairs Thursday morning, Mark Calabria, President Trump’s nominee to take over the Federal Housing Finance Agency, said the rumors were true: He did, in fact, discuss plans to recapitalize the government-sponsored enterprises with administration officials.
Several high-profile civil rights groups this week threw cold water on Sen. Mike Crapo’s plan to reform Fannie Mae and Freddie Mac, saying it would weaken regulation of the government-sponsored enterprises and increase the cost of homeownership.
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