Fannie Mae-No Politics (FNMA)

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THERE IS A PLAN ‘No Fear’

“There is no longer the fear of mortgage-credit contraction through FHFA policy mandates,” Boltansky said.

The improving financial condition of Fannie Mae and Freddie Mac has also helped quiet calls for change. Thanks to record earnings the companies have paid a total of $185.2 billion to the U.S. in dividends. Under terms of the takeover, that money technically counts as a return on the government’s stake and not as a repayment of the $187.5 billion bailout.

“There’s high danger of getting this wrong, with catastrophic results, and there’s low pressure to do it quickly,” said Mike Calhoun, president of the Center for Responsible Lending, a consumer advocacy group.

“So all that leads us to think a slow, cautious approach is best,” Calhoun said. “In normal times, a major bill like this would be a 10-year-long process in Congress.”

To contact the reporters on this story: Clea Benson in Washington at [e-mail]; Cheyenne Hopkins in Washington at [e-mail]

To contact the editor responsible for this story: Maura Reynolds at [e-mail]