Fannie Mae-No Politics (FNMA)

[navycmdr]

TIM HOWARD Summary (final paragraph) ....

https://howardonmortgagefinance.com/2020/05/27/now-we-know/

I haven’t yet determined whether to make a formal comment

on the proposal, but I’m leaning against it.

For the 2018 capital rule my comments were intended

to help FHFA find the right balance between safety and soundness

and allowing Fannie and Freddie to do business in a way that

provided the maximum support to the widest array

of borrower types, throughout the business cycle.

The current FHFA leadership has made clear

that this is neither their goal nor their interest.

Yet I do believe it’s important for affordable housing groups

and others interested in economics-based housing policy to

comment on the FHFA proposal, if for no other reason than

to get their views on the record.

At some point there will be a FHFA Director who will look at

his or her capital-setting authority

not from Calabria’s ideological perspective

but as a means of safely restoring Fannie and Freddie

to their traditional roles of channeling large amounts

of low-cost funds from the international capital markets

to U.S. mortgages, to help a wider segment of the American

population afford a home. This final step,

which Director Calabria so adamantly refuses to take

with the current proposed rule, will complete the

companies’ full release from their 2008 conservatorships.