About that GSE Bill Being Worked on in the Senate…
By Carisa Chappell
cchappell@imfpubs.com
Although there appears to be plenty of motivation for reforming Fannie Mae and Freddie Mac in 2018, it remains a herculean legislative effort that will require bipartisan support. Some observers think overhaul of the GSEs this year is closer than it has ever been, while others say political headwinds could make it impossible.
Jim Parrott, senior fellow at the Urban Institute, said, “I would expect us to see a hard run taken at reform this year for three reasons.” He told Inside Mortgage Finance that each of the key parties to making reform a done deal has said that it’s one of their main priorities for the year. This includes the Senate Committee on Banking, Housing and Urban Affairs, the House Financial Services Committee and the Treasury Department.
There’s a strong consensus among both Republicans and Democrats on where to start, he said. But most importantly, Parrott added that progressives and conservatives alike have reason to negotiate.
“Absent legislation, conservatives can see that we’ll remain locked in a government-dominated market indefinitely and progressives can see that in 2019 a new Federal Housing Finance Agency director will begin to undo almost all of what they like in the current system,” he said. For the full analysis, see the new edition of Inside Mortgage Finance, now available online.
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