Some economists suggest Fannie and Freddie should accept mortgages that include a modest prepayment penalty as a way to keep residential mortgage rates lower. But that would be a political challenge.
Despite ending his long hiatus on GSE talk, Trump fails to persuade skeptics that he’s ready to take Fannie and Freddie out of conservatorship anytime soon.
After weeks of silence on the status of Fannie Mae and Freddie Mac, President Trump stirred up shareholders this weekend by bringing up the concept of a public offering at two separate events.
Industry watchers believe GSE reform is probably off the table until after the mid-term elections at least, as the administration’s focus has shifted to other priorities.
Trump budget ignores GSE reform; Morningstar DBRS affirms AAA ratings on GSEs; Vice Capital an early adopter of new low loan balance payment categories; Fannie to simplify income eligibility calculations for some LLPA waivers.
Analysts are increasingly skeptical that the Trump administration will follow through on plans to recapitalize and release the GSEs. Some seek broader reform.
Talk of a capital raise for Fannie Mae and Freddie Mac has waned in recent months, leading some policy experts to question whether the Trump administration has the appetite to take the GSEs public.