Fannie Mae-No Politics (FNMA)

[navycmdr]

Wall Street Warns Mnuchin Against ‘Hastily’ Ending the GSE Conservatorships

November 23, 2020 - [e-mail]
(hack Muolo never writes ANYTHING positive about the GSEs)



After hearing the rumors that the Federal Housing Finance Agency wants to expedite ending the GSE conservatorships before President Trump leaves office, Wall Street has a message for the Treasury Secretary: Don’t do it.

At least that’s what the Structured Finance Association suggested in new correspondence to Treasury chief Steven Mnuchin.

“SFA reiterates our support for the ultimate goal of releasing the GSEs from conservatorship and to increase the role of private capital in our nation’s housing finance system in a responsible manner,” writes SFA CEO Michael Bright.

The former Ginnie Mae interim president said the Wall Street trade group applauds Treasury’s work putting Fannie Mae and Freddie Mac on sound financial footing, but warned a “hastily thrown together exit from conservatorship based on the political calendar risks undoing the positive work that has been accomplished and is currently underway.”

SFA, which represents almost 400 institutional members, wants Treasury – the holder of Fannie/Freddie senior preferred shares – to “chart a course that will allow a responsible transition for the GSEs…”