Fannie Mae-No Politics (FNMA)

[Lajrchamp]

Not out of Conservatorship "ANY TIME SOON"
It's simple. The more times you tell a lie, the more people believe it. Congress embodies that statement. We are in for the long haul.

Sadly, I think there's a lot of truth to this. There is no indication that the Biden Administration has any intention of taking F&F out of conservatorship, and we know the Dems who control Congress would leave them in there forever if they could. Conservatorship is the best of both worlds for them: (1) they do not want less affluent borrowers to have to seek private capital (which they think would keep low-income and higher risk borrowers from getting mortgages); (2) they want more Government control of housing finance.

Short of SCOTUS issuing a Brown v Board of Education style, "The Government shall use all deliberate speed to take the GSEs out of conservatorship" remedy, F&F are probably going to be in there for a long time. Biden will fire Calabria (which wouldn't give me that much heartburn) and replace him with someone endorsed by Maxine Waters.