Mnuchin Nomination Could Signal Moderate Reform

Treasury Secretary nominee Steven Mnuchin has said that increasing bank lending will be the primary goal of the Trump Administration's Dodd-Frank reform efforts, according to a Politico article. Wednesday morning on CNBC's "Squawk Box" Mnuchin explained that he feels "the number one problem with Dodd-Frank is it’s way too complicated and it cuts back lending, so we want to strip back parts of Dodd-Frank that prevent banks from lending and that will be the number one priority on the regulatory side."

Mr. Mnuchin vows a tax overhaul to boost the U.S. economy, promises "the most significant middle income tax cut since [Ronald] Reagan", plans to cut the corporate tax rate from 35% to 15%, and believes the U.S. could “absolutely” achieve a 3% to 4% growth rate.

He has also stated that Fannie Mae and Freddie Mac should leave government control and that the incoming administration “will get it done reasonably fast,” according to Bloomberg. Mnuchin went on to explain that government ownership of the companies displaces private mortgage lending. “We will make sure that when they are restructured, they are absolutely safe and don’t get taken over again. But we’ve got to get them out of government control,” he said.

SFIG previously released a GSE Reform Side-by-Side Legislative Comparison to provide our members with an overview of how each of the four most prominent housing finance reform proposals compare.

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