Administration Won’t Rush Fannie and Freddie Conservatorship Plan

August 12, 2019
us-treasury
Federal Housing Finance Agency director says his hope is the GSEs will be out of conservatorship by 2024.

 

The Administration’s hotly anticipated blueprint for overhauling mortgage guarantors Fannie Mae and Freddie Mac may not be published until September as the U.S. Treasury juggles several other pressing issues, the housing regulator told Reuters. Mark Calabria, director of the Federal Housing Finance Agency (FHFA), which oversees the government-sponsored enterprises, said in an interview it was his “hope” that they would have exited or be ready to exit conservatorship before his term ends in 2024. However, Calabria is not operating toward a hard deadline, he noted. “That’s my time horizon,” he said, referring to the end of his term. “I’m under no expectation to try to get all this done... So, if in four years, nine months they’re not out of conservatorship, I’m not pushing them out.” Calabria’s comments will temper market expectations for a speedy overhaul of Fannie and Freddie before the 2020 presidential election. Calabria said he expected the Treasury will in the report back some form of government guarantee for Fannie and Freddie. But he said he planned to advocate for a guarantee limited to the mortgage-backed securities issued by the pair, rather than a government backstop for the companies themselves. 

Source: Reuters