Fannie Mae-No Politics (FNMA)

[navycmdr]

Ex-FHFA Chief DeMarco Warns that Private Capital May Lose Interest in Mortgages

Time is not a friend to the housing finance system so long as Fannie Mae and Freddie Mac remain in government conservatorship with no endgame in sight, according to the man who used to be their regulator.

(yeah ...so RELEASE the KRAKEN ! ) lol

In one of his first public speeches since leaving the agency this spring, former FHFA Acting Director Edward DeMarco told attendees at the Bipartisan Policy Council’s housing summit in Washington that the GSEs’ ongoing conservatorships – now six years old – will continue to distort the market and place taxpayers at risk.

“The conservatorships are a huge barrier to entry for private capital,” said DeMarco. “The more we wait, the more [we risk] that private capital is going to lose interest and move to other sectors that offer more inviting opportunities.”

Former Federal Housing Finance Board Chairman Bruce Morrison agreed. “There is no such thing as standing still. Decisions or non-decisions have consequences,” he said. Morrison said policymakers should reduce the profitability of the GSEs while doubling down on their risk-sharing initiatives.

Last month DeMarco accepted a position as a senior fellow in residence at the Milken Institute’s Center for Financial Markets.