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Volume 17 - Number 9

May 5, 2017

Moodys: Tax Reform Credit Negative for Fannie, Freddie

The Trump administration’s corporate tax rate proposal would not be a good look for Fannie Mae and Freddie Mac, according to a new analysis by Moody’s Investors Service. The ratings firm called a lower tax rate credit negative for the GSEs since it would affect their deferred tax assets and require a Treasury draw. Last week, top administration officials outlined Trump’s tax plan, which included cutting tax rates for businesses. Fannie Mae would have to write down its DTA by $15.6 billion and Freddie Mac by $5.7 billion if the corporate tax rate is reduced to 15 percent from the current statutory amount of 35 percent.

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What’s your opinion on how Mick Mulvaney has managed the CFPB since he took over three months ago?

He’s done a good job of paring back the agency’s excesses and we’d like to see more.


I hope he totally dismantles the agency and sends those functions back to the agencies hence they came.


Not bad, but he needs to take his time making additional changes.


We’re totally aghast. He’s gone way too far in protecting the rights of companies not consumers!