Document Type
Article
Publication Date
9-12-2019
Keywords
United States. Federal Housing Finance Agency, Federal National Mortgage Association, Fannie Mae, Freddie Mac, Housing finance reform
Abstract
The Trump administration released its long awaited housing finance report and it is a game changer. The report makes clear that it is game over for the status quo of leaving Fannie Mae and Freddie Mac in their conservatorship limbo. Instead, it sets forth concrete steps to recapitalize and release the two entities. This has been a move that investors, particularly vulture investors who bought in after the two companies entered into their conservatorships, have clamored for. It is not, however, one that is in the best interests of homeowners and taxpayers. The report recognizes that there are better alternatives. Indeed, it explicitly states that the “preference and recommendation is that Congress enact comprehensive housing finance reform legislation.” But the report also states that the conservatorships, which are more than a decade old, have gone on for too long. So the report throws down a gauntlet to Congress that if it does not take action, the administration will begin the formal process of implementing the next best solution.
Recommended Citation
Reiss, David, "There is Hope of Housing Finance Reform That Works for Americans," The Hill (September 12, 2019)
Comments
This article predates the author's affiliation with Cornell Law School.