Fannie Mae-No Politics (FNMA)

[Dollars1]

"The housing market recovery continued in 2014, despite some signs of softness early in the year. As house prices continued to rise, the number of households with negative equity declined while the performance of outstanding loans improved. Congress has debated several housing finance reform proposals, including separate pieces of legislation that advanced out of the House Financial Services Committee in July 2013 and the Senate Banking Committee in May 2014. The Council recommended that comprehensive legislation address the conservatorship of Fannie Mae and Freddie Mac — the government-sponsored enterprises (GSEs) — and clarify the future role of the federal and state governments in mortgage markets. In the absence of housing finance reform, FHFA, primarily through its conservatorship and oversight of the GSEs, continued to make meaningful efforts to improve housing finance infrastructure and reduce the amount of taxpayer risk. However, core challenges persist. The GSEs remain in conservatorship, subject to FHFA supervision, with the vast majority of newly originated mortgages carrying a federalgovernment backing either through the GSEs, the Federal Housing Administration, or other government-backed programs. The Council’s report includes a number of recommendations to reduce the GSE’s exposure to mortgage credit risk."

http://financialservices.house.gov/UploadedFiles/HHRG-114-BA00-WState-JLew-20150617.pdf