Fannie Mae (FNMA)

[obiterdictum]

thank you Obit,

You are welcome lushka.

1. The review of the 26 proposals in 2013 was interesting. I may be wrong on this but as I remember there are 2 bills currently in the early stages which favor keeping the GSE's (as opposed to wind downed liquidate) and recommend a form of recap, and there are no current proposals or plans to wind down?

The two House bills are Mulvaney's H.R. 4913 - Housing Finance Restructuring Act of 2016 and Capuano's H.R. 491- Let the GSEs Pay Us Back Act of 2017. There are no current proposals to wind down. However, those who wrote bills to liquidate the GSEs are still present (Hensarling-Garrett (House- H.R.2767: Protecting American Taxpayers and Homeowners Act of 2013) and Corker, Warner and Crapo (Senate - S. 1217 - Housing Finance Reform and Taxpayer Protection Act of 2014). The latter was first proposed by Corker-Warner in 2013 and then altered by Johnson-Crapo in 2014.

During the nomination hearings of Mnuchin and Mulvaney, Corker, Warner and Crapo sought confirmation from both that they would follow a legislative solution that was previously tried. Mnuchin and Mulvaney did not give any committment to solely a legislative solution.

2. If correct this is a definite change in the thinking of Congress from 2 years ago and coupled with the current administrative team, may certainly set the stage for recap. Any thoughts on this?

There is an addition of two bills by two Representatives in the House. These additions do not represent a change in the thinking of Congress that is composed of 435 Representatives and 100 Senators. Capuano's bill is basically the same bill first proposed in 2013, and then again in 2015 and 2017. It has no support in the House. He just keeps adding it without an update and without addressing the larger issues of the GSEs. This bill does nothing to free the GSEs from US Government control.

Mulvaney's bill is more comprehensive and is the only bill worth considering in the House, if someone decides to pick up where Mulvaney left off.

The Corker-Warner and Johnson-Crapo bill versions failed in the Senate. Even so, S. 1217 is on tap today as clearly seen in Corker, Warner and Crapo's questioning of the nominees, their statements post 2013, former White officials comments and conservative think tank reports (see a sample articles below). Hensarling also plans to push his bill with Trump (see article below). The same people in Congress and outside of it are around pushing their agenda to wind down and liquidate the GSEs and replace them with alternative financial entities and arrangements.

Hopefully, the new administration will be bold and overcome these difficult to enact proposals.

Source:
H.R. 4913: Housing Finance Restructuring Act of 2016
https://www.congress.gov/bill/114th-congress/house-bill/4913/text
https://www.govtrack.us/congress/bills/114/hr4913

H.R. 491: Let the GSEs Pay Us Back Act of 2017
https://www.govtrack.us/congress/bills/115/hr491/text

H.R.2767: Protecting American Taxpayers and Homeowners Act of 2013
https://www.govtrack.us/congress/bills/113/hr2767
https://www.congress.gov/bill/113th-congress/house-bill/2767

S. 1217: Housing Finance Reform and Taxpayer Protection Act of 2014
https://www.congress.gov/bill/113th-congress/senate-bill/1217
https://www.govtrack.us/congress/bills/113/s1217

CORKER APPLAUDS INCLUSION OF JUMPSTART GSE REFORM PROVISION IN OMNIBUS
https://www.corker.senate.gov/public/index.cfm/news-list?ID=ed378b97-8108-436e-a2ee-146951620b29

Corker, Warner, bipartisan Senate coalition to FHFA: Leave GSE reform to us
http://www.housingwire.com/articles/37491-corker-warner-bipartisan-senate-coalition-to-fhfa-leave-gse-reform-to-us

Building on the Johnson-Crapo Consensus
http://bipartisanpolicy.org/blog/johnson-crapo-housing/

A Johnson-Crapo Dialogue
http://www.urban.org/sites/default/files/publication/22771/413181-A-Johnson-Crapo-Dialogue.PDF

Hensarling Targets GSE Reform, Dodd-Frank Rollback in Ambitious Agenda
http://www.nationalmortgagenews.com/news/compliance-regulation/hensarling-targets-gse-reform-dodd-frank-rollback-in-ambitious-agenda-1091018-1.html

Toward a New Secondary Mortgage Market
http://assets1b.milkeninstitute.org/assets/Publication/Viewpoint/PDF/Toward-a-New-Secondary-Mortgage-Market.pdf

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