Competing Messages on Prospects for GSE Reform

Two recent articles from HousingWire show the degree to which uncertainty remains around the prospects of GSE reform. The first article from February 2nd cites a recent Fitch report that obstacles remain in achieving GSE reform in the near term. "The future of Fannie Mae and Freddie Mac remains among the thorniest of public policy questions," according to Fitch. There are a number of unanswered questions, with many vested interests vying to influence the debate. Fitch's analysts write "While addressing the Fannie Mae and Freddie Mac question may feature in the new administration's agenda, its complexities and the differing desired outcomes suggest it may become a secondary agenda item."

Notwithstanding such industry reports, a separate article from HousingWire on February 3rd cites White House National Economic Council Director Gary Cohn as saying that GSE reform is "definitely on our agenda." Talking with CNBC about Treasury Secretary Nominee Steve Mnuchin, Cohn told CNBC that "Mnuchin has been spending a lot of time working on GSE reform" and that he "will be taking that on as one of his early priorities." The HousingWire article also notes that in a recent piece in the Wall Street Journal, Cohn has laid out a road map for targeting new financial rules, including a Treasury-led effort to overhaul Fannie Mae and Freddie Mac.

SFIG will continue to provide market-informed feedback to policy makers to serve as the go-to source for industry knowledge and experience as we proactively develop and promote strategies to advocate for a return of private capital to the secondary mortgage market.

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