Fannie Mae-No Politics (FNMA)

[Monty-2121]

White House advances housing finance reform proposal
BY MarketWatch
— 2:41 PM ET 06/21/2018

The Trump administration on Thursday released a proposal for the role of the government in housing finance, setting out a list of principles that are broadly similar to most consensus views on the topic, but which practically stand little chance of being enacted. The two government-sponsored mortgage enterprises, Fannie Mae ( FNMA
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) and Freddie Mac ( FMCC
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) would be reorganized as private entities, and would be able to issue mortgage bonds that have an explicit guarantee from the federal government, but which could only be used in catastrophic cases. Many housing industry participants believe some form of government guarantee is necessary to protect the 30-year fixed-rate mortgage, and that the 30-year fixed-rate mortgage is, in turn, necessary to maintain the housing market and homeownership privileges Americans now enjoy.

-Andrea Riquier; 415-439-6400; [e-mail]


(END) Dow Jones Newswires
06-21-18 1441ET
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