It is now exactly ten years since Fannie Mae and Freddie Mac were placed into a government conservatorship as the U.S. economy inched toward a catastrophic free fall. And where do things stand?
Steven Mnuchin was not even confirmed as Treasury Secretary when he assured in the fall of 2016 that GSE reform would be a top priority for the Trump Administration.
Fannie Mae ended 2017 with a loss of $6.5 billion, leaving it with a deficit of $3.7 billion. Taxpayers will need to fill the gap since Fannie and Freddie are locked in a government-run conservatorship.
House Financial Services Committee Chairman Jeb Hensarling today issued a not-so-subtle warning to Democrats: Support evolving GSE reform legislation now or risk having affordable housing programs gutted next year.
There seems to be a little more common ground on GSE reform but the terrain is rocky and has deep chasms so it could be slow going before Congress and the Administration can finally resolve the issue at the heart of the financial crisis of ten years ago.
The key pillars of loan quality are eroding, a Moody’s report notes, providing fewer protections for investors.
I am not philosophically opposed to the CFPB’s mandate or the regulations it has advocated. I believe in effective regulation, and have served as an intern at the Social Security Administration.
Congress has always been prone to slip items into catch-all spending measures as legislative sessions draw to a close.
We are approaching the tenth anniversary of the start of the 2008 economic crisis.
From the Wall Street Journal’s CEO Council annual forum, a two day event where the world’s most ambitious leaders connect, came a tweet from the WSJ Capital Journal account which amplified remarks from Treasury Secretary Steven Mnuchin:- “We do want to preserve the 30-year mortgage.. and we don’t want to put taxpayers at risk. Those are the two starting points on GSE reform.”