Fannie Mae (FNMA)

[jacklanvo99]

What do you think is going to make GSE reform happen?

My view in Washington is that there is nothing like a good crisis to create motivation. The unfortunate thing about the GSEs is if you see a member of Congress going out of a town hall, you don’t have the average citizen saying, "Hey, what is going to happen to Fannie Mae and Freddie Mac?" It is technical. It is esoteric. It is actually not a partisan issue in any given way. You have to ask yourself, what is the motivation? Why would anybody stick their neck out and do GSE reform?

But, let us just suppose that the new FHFA director represents the side of the conservative elements in Washington who believe the government’s role is overstated in housing finance. Remember the PATH Act in the House of Representatives sponsored by [House Financial Services Committee Chairman Jeb Hensarling, R-Texas] that went through the committee on a purely partisan vote. [That] is the Republican bill that would actually wind down the GSEs altogether. My point is that [if] a new FHFA director takes steps that look like it could be shrinking the scope of the GSEs, that might motivate Democrats to take action.

In many cases, there has been a stall-and-delay approach, which is, let’s just wait until we get the administration that is most favorable to our efforts. In some cases, it was a hope that the Hillary Clinton administration might be more favorable to some of the more liberal interests in the party. She is not in the presidency, and we have a party today that represents concerns about the oversized role in government. So, my view is that we as an industry need to demand GSE reform, push hard on it and not think that things are going to get better. I am actually somewhat hopeful that actions may take shape that will motivate members of Congress, particularly on the Senate Banking Committee, which I think is the most important voice on the s.....{more}
http://www.scotsmanguide.com/News/2017/10/MBA-president--GSE-reform-is-within-reach/