Watt Says GSE Reform Differs from Housing Finance Reform

Mortgage News Daily writes that Mel Watt, Director of the Federal Housing Finance Agency (FHFA), considers "GSE reform" as being distinct from "housing finance reform". He explained that the actions FHFA has taken with regard to guarantee fees, GSE risk management and governance, and the CSP and Single Security fall under the umbrella of GSE reform. However, he believes that the broader housing finance reform is the responsibility of Congress, and offers unresolved questions that should be answered legislatively. Those include questions about the level and form of government backing, how to transition to a future state, statutory changes to the current GSE’s charters, and the regulatory and supervisory structure in a future system.

SFIG has and will continue to advocate for holistic housing finance reform, including an appropriate role for government support, transparent and equitable regulatory treatment, and a return to the historical balance of funding between agency MBS (including CRT), whole loan funding, and PLS. To participate in SFIG's GSE Reform Task Force, please email Dallin.Merrill@SFIndustry.org.

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