Mnuchin Delays GSE Reform to 2018

Sep 18, 2017

The Trump Administration is putting the long-overdue reform of the government-sponsored enterprises (GSEs) on the proverbial back-burner until next year.

In an interview with Bloomberg, Treasury Secretary Steven Mnuchin said the Administration is not planning to focus on GSE reform this year, adding that Fannie Mae and Freddie Mac were not yet in a position to be removed from their nine-year position within federal conservatorship.

“We need to fix Fannie and Freddie,” said Mnuchin, who was confirmed as Treasury Secretary in mid-February. “Realistically, this is a 2018 issue, but we’re going to fix it and when we fix it we want to make sure we never put the taxpayers at risk.”

Mnuchin did not give a hint regarding which GSE reform solution was favored by the Administration.

Back in April of this year, the Mortgage Bankers Association (MBA) issued a white paper, “GSE Reform: Creating a Sustainable, More Vibrant, Secondary Mortgage Market," dissecting ways in which the GSEs can be amended.

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Phil Hall

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Sep 18, 2017

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