Treasury Secretary Mnuchin: GSEs Won’t Stay ‘As-Is’ for Long

MReport writes that Treasury Secretary Steven Mnuchin won't maintain the status quo for Fannie Mae and Freddie Mac. In an interview with Fox Business reporter Maria Bartiromo, Secretary Mnuchin stated that while he had not committed to privatizing the GSEs, the Administration "Is committed to housing reform. We’re committed to not leaving them as-is for the next four years."

According to the article, Secretary Mnuchin states that the overall goal is to keep housing affordable without putting American taxpayers in harm's way. "We want to make sure that there is ample credit for housing," Mnuchin told Bartiromo. "It's a very, very important part of the economy, but we also want to make sure we don’t put the taxpayers at risk. And as you know, those two companies only exist because we have a giant line from the Treasury that supports them."

SFIG's GSE Reform Task Force advocates for a return to a historically normal balance in the funding mix of the U.S. housing market, between government-guaranteed MBS issuance, bank portfolio lending, and private-label MBS issuance. If you would like to join the GSE Reform Task Force, please email Dallin.Merrill@sfindustry.org.

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