Ending the conservatorship during the current Trump administration appears unlikely. It’s also unclear whether GSE pricing for VS4 loans will be adjusted again.
Although Treasury Secretary Scott Bessent said the Trump administration could deal with a possible release of the GSEs before its term ends, he hinted that he didn’t see the point.
Jon Oksenholt’s plan would create a parent company that would own the GSEs and Common Securitization Services but allow them to keep their charters and operate independently.
In a scenario that Fannie and Freddie exit conservatorship, Urban Institute analysts believe that the courts will allow the uniform MBS to persist, even though it requires coordination between the GSEs that could invite antitrust litigation.
A GSE shareholder advocate says selling rights to existing shareholders could resolve conflicting objectives that have vexed GSE reform during the Trump administration.
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.