Three Democrats joined Senate Republicans in a vote to make Bill Pulte, the grandson of the founder of homebuilding giant PulteGroup, the chief regulator of Fannie Mae, Freddie Mac and the Federal Home Loan Banks.
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.
According to FHFA’s inspector general, the Division of Enterprise Regulation has been steadily working with Freddie Mac to remedy deficiencies in the enterprise’s risk management.
Pulte said that any exit by the GSEs from conservatorship “must be carefully planned to ensure the safety and soundness of the housing market without putting upward pressures on mortgage rates.”
For many years, when households couldn’t afford to pay all their bills, they prioritized their auto loan payments. But as home prices have soared, mortgage payments have taken precedence.