GSE reform

Federal Housing Finance Agency Director Bill Pulte is the new chair for both and he has removed several members while adding a few new names at each.

Three Democratic senators joined Republican colleagues to confirm the businessman, who previously voiced his support for easing government regulations.

Ryan Donovan, the Council of Federal Home Loan Banks' CEO, foresees affordable housing mandates becoming more focused on home supply than demand.

The grandson of the PulteGroup founder did not elaborate on plans for a much-anticipated government-sponsored enterprise exit from conservatorship.

Trump's housing policies risk destabilizing multifamily markets by cutting HUD and GSE support, writes the chairman of Whalen Global Advisors.

If the government were to end the Fannie Mae and Freddie Mac conservatorships, the new status could constrain CRT deal ratings, as they are counterparties.

"Anything that is done around a safe and sound release is going to hinge on the effect of long-term mortgage rates," Bessent said. 

Fannie Mae and Freddie Mac's stock were downgraded to "underperform" by KBW as they are currently priced above its expectations.

If the GSEs are privatized with only their current capital levels, respondents indicated risk premiums on MBS would widen by as much as 45 basis points or more.

Analysts agree recent changes to government agreements will end the Fannie Mae and Freddie Mac conservatorships, but it'll likely happen later rather than sooner.

Releasing the GSEs from government conservatorship is on the agenda for the incoming Trump administration. Doing so could threaten the 30-year fixed rate mortgage.

A Congressional Budget Office report updating one from four years ago finds 60% of its 250 scenarios will result in the Treasury getting fully repaid, up from 12%.

Releasing Fannie Mae and Freddie Mac from conservatorship without legislation is very high risk for the shareholders, writes the chairman of Whalen Global Advisors.

President-elect Trump's victory comes with the support of a Republican Congress. Also in November, many states voted on local property tax matters.

The group is calling for the Trump administration to preserve certain features if it picks up where it left off and finishes cutting ties to the Treasury.

Trump's return to the White House is reviving the prospect of preferred stockholders getting some money back after the U.S. took control of the agencies during the 2008 financial crisis to keep the housing market from collapsing.

A former housing regulator confirmed that he anticipates a release from conservatorship would occur if Trump's elected, adding to other signs a plan is brewing.

The plan from the Heritage Foundation, a group the first Trump administration was largely in line with, would shutter CFPB, break up HUD and raise FHA premiums.

Analysts foresee less regulation and a weighty tax cut decision, but aren't confident that the former president will end GSE conservatorship.

Former Federal Housing Finance Agency Director Mark Calabria may return, but analysts told an industry meeting someone else is more likely in line for the role.