Why work with Congress?
Otting should take specific actions now within his power. If Fannie and Freddie get back to what they were before the government takeover with the right level of capitalization, then in my opinion they will be strong again. Strong companies are hard to change.
Let congress battle over the reform later.
Ultimately no one wants to put the American Dream of a 30 year mortgage at risk. No one in Congress who wants to be reelected wants bad news on their resume. And I doubt that Democrats are going to allow Banks to take over guaranteeing mortgages.
This may be purely a political move so that members of Congress don't block the positive efforts Otting, Calabria, Mnuchin, and Trump can make in the next 18 months. If played right, this could be another win for Trump that helps him get reelected and allows the Republicans to retake the House.
Basically, they can say we are only going to make Fannie and Freddie strong, keep the American Dream alive, and protect the American Taxpayers from future problems by taking actions X, Y, and Z. Z will be a bipartisan reform plan to work out with the super slow congress.
My thoughts anyway.
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