GSE reform

The Federal Housing Finance Agency has far more authority to upend the status quo than most realize, according to a new report.

With the Trump administration appearing willing to shake up Fannie Mae and Freddie Mac without Congress, Reps. Lacy Clay, D-Mo., and Sean Duffy, R-Wis., said legislative action should be a priority.

The assumption that conservatorship can end without significant changes in how the GSEs operate may be the most dangerous one of all.

The consolidation of the two companies' securitization platforms into a single bond market became official on Monday.

There's been chatter about whether the government-sponsored enterprises should be considered systemically important. But supporters must consider that such a designation would put the Fed in charge of their supervision, a step that would do more harm than good.

The head of Fannie Mae and Freddie Mac’s regulator blamed “burdensome” local regulations for a lack of housing supply, and also provided an update on the administration’s plan for GSE reform.

The nonconforming market is ready to absorb most of the government-sponsored enterprise loans covered by the QM patch, but not all of them, according Redwood Trust.

The launch of a combined securitization platform for Fannie Mae and Freddie Mac is meant to ease the transition to a new housing finance system. But questions remain about how the mortgage sphere will adapt to the single security.

The FHFA director’s recent comments about whether the government-sponsored enterprises should be designated as SIFIs tees up a potentially significant element of the mortgage finance debate.

FHFA Director Mark Calabria should ensure the government-sponsored enterprises hold at least 4% of total assets as part of housing finance reform.