Secretary Mnuchin Renews Pledge to Reform GSE’s, Maintain Explicit Guarantee

According to a report in Fox Business, Treasury Secretary Steven Mnuchin renewed his pledge to remove Fannie Mae and Freddie Mac from conservatorship, stating, “I am determined that we have a fix to the GSEs and that we don’t leave them in conservatorship for the rest of the time.” Though he declined to detail specific proposals, he did note that he was committed to maintaining an explicit government guarantee on MBS, later on in the interview saying, “I think that having a government guarantee on a 30-year mortgage is important for liquidity in the markets.”

 

On the issue of regulatory reform, Mnuchin also posited some thoughts to Fox Business host Maria Bartiromo stating the administration was actively exploring post-midterm regulatory and legislative reform, noting that when current FHFA director Mel Watt's term concludes Jan. 1, 2019, Secretary Steven Mnuchin would, “Make sure we have someone in that job that supports the agenda."

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