The Treasury Department's continued silence on its pending plan for the future of Fannie Mae and Freddie Mac is fueling suspicion that the administration does not have a concrete proposal.
Instead, industry officials, analysts, and academics are increasingly convinced that the White House will offer guiding principles or a list of options outlining its philosophy on the GSEs and potentially offering some alternatives vetted by the Treasury on how to approach the matter.
"We do believe they will come out with guiding principles, not an absolute restructuring plan," said Scott Griffith, the chairman of the GSE presidential advisory group at the National Association of Realtors.
(Together, the two provide 70% of the liquidity for all residential mortgages originated in the U.S., and are important buyers of multifamily product too.)
Industry observers are divided on whether such a move would make sense. Some said it would be a mistake to fail to produce a concrete proposal, considering that the GSEs have been in conservatorship for more than two years and that the administration has previously punted on the issue.
"It is incumbent for the administration to come up with a plan," said Cornelius Hurley, the director of the Morin Center for Banking and Financial Law at Boston University. "Punting it out another month or two is not an option financially or politically."
Some observers said the administration does not have to deliver a detailed proposal but could at least move the ball forward by presenting alternatives and guiding principles.
Republicans, who took control of the House this year, are widely expected to oppose any plan the Obama administration offers, and any specific solution would be unlikely to satisfy the variety of interests different stakeholders support.
However, some lobbyists close to the matter said new GOP members of Congress are rapidly being educated on how important the GSEs are to housing finance, and are beginning to realize you cannot just shut them down outright.
