Trump administration officials on Tuesday defended their plan to Congress for ending government control of mortgage finance giants Fannie Mae and Freddie Mac, clashing with Democratic senators on whether the change would raise home borrowing costs and neglect lower-income homeowners.
Trump administration officials are going before Congress to defend their plan for ending government control of Fannie Mae and Freddie Mac.
The Trump plan is a big wet kiss for Wall Street, which can’t wait to recapitalize the two mortgage giants, but not so much for taxpayers who, whatever promises are made, will surely end up on the hook again someday should things go south.
President Donald Trump has issued an order for the government to end its 10-year conservatorship of the mortgage companies Fannie Mae and Freddie Mac.
The CEO of the Mortgage Bankers Association joined the chorus of government and industry leaders calling for comprehensive GSE reform in testimony before the House Financial Services Committee Subcommittee on Housing and Insurance yesterday.
For once, all parties are in agreement on an issue: the government-sponsored entities Fannie Mae and Freddie Mac need to be reformed, or at the very least removed from conservatorship. There’s political will – but is there a way?
Federal Housing Finance Administration (FHFA) Director Melvin L. Watts told the U.S. Senate Committee on Banking, Housing and Urban Affairs that “Congress urgently needs to act on housing finance reform” and bring Fannie Mae and Freddie Mac out of receivership after almost nine years.
