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FHFA Director Mark Calabria Gives Update on Fannie and Freddie

The Federal Housing Finance Agency FHFA is working on a plan for Fannie Mae and Freddie Mac, and in this Video Spotlight, FHFA Director Mark Calabria discusses how quickly the GSEs can be put back into private hands. Calabria appeared on Bloomberg to discuss where the FHFA and the Treasury Secretary currently sit on GSE reform. Part of the plan involves reducing Fannie and Freddie 's footprint.

The Trump administration released its plan for housing finance reform earlier this month, more than a decade after the Great Recession sent the GSEs into conservatorship.

According to the department, the Treasury Housing Reform Plan consists of a series of recommended legislative administrative reforms aimed to “protect American taxpayers against future bailouts,” preserve the 30-year-fixed-rate mortgage, and help guide Americans toward the path to homeownership.

“The Trump Administration is committed to promoting much needed reforms to the housing finance system that will protect taxpayers and help Americans who want to buy a home,” said Treasury Secretary Steven Mnuchin in a release. “An effective and efficient Federal housing finance system will also meaningfully contribute to the continued economic growth under this Administration.”

Fannie Mae and Freddie Mac suffered significant losses due to their structural flaws and lack of sufficient oversight during the financial crisis of 2008. The GSEs received more than $190 billion from the Treasury Department.

According to Calabria, Fannie and Freddie won't go to market until the end of 2020.

 

About Author: Seth Welborn

Seth Welborn is a Staff Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer.
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