Fannie Mae-No Politics (FNMA)

[obiterdictum]

Correction: Congress cannot end the conservatorship. The Congress can alter or repeal the GSEs federal charter.

Demarco has repeatedly stated that he was waiting for Congress to reform the housing finance system where the GSEs are a part before he released the GSEs from the conservatorship. Recently, however, DeMarco has publicly stated that he is going forward with his plan while Congress works through its plans Congress.

DeMarco concludes his remarks at the Mortgage Bankers Association’s 100th Annual Convention and Expo in Washington, D.C. on October 28, 2013 with:

At some point, lawmakers will need to decide on the appropriateness and level of a government
credit subsidy for housing. Such a decision should include whether a government-owned
corporation should undertake some or all of the business activities of Fannie Mae and Freddie
Mac, or whether some or all of those functions should be repositioned in the private sector.

In the meantime, FHFA will continue to carry out its mandate as conservator, accelerating its
efforts to ease the transition to a post-conservatorship market ultimately defined by lawmakers.
And the employees at Fannie Mae and Freddie Mac will continue to ensure their companies
bring stability and liquidity to the market while they contribute directly to building towards that
post-conservatorship market.

http://www.fhfa.gov/webfiles/25651/MBASpeech102813final.pdf