Page 10 - January-February-2018_GSE_Report

FANNIE MAE AND FREDDIE MAC JJAN.U- AFERBY. 22001188
HOUSING FINANCE REFORM PROPOSALS
Plan
Who issues MBS?
Who provides catestrophic insurrance?
Who provides non- catestrophic insurrance?
What happens to Fannie and Freddie?
Pre-crisis Model 2.0
Fannie, Freddie, Ginnie Mae
Fannie, Freddie
Fannie,
Freddie and private market thru CRT
Remain in business but remain highly regulated, some capital retention
Milken Plan
Ginnie Mae
Government
Fannie,
Freddie and other chartered guarantors
Become lender-owned mutuals
MBA Plan
Common securitization platform, Ginnie Mae
Government
Fannie,
Freddie and other chartered guarantors
GSEs become private regulated utilities
Corker-Warner Draft (02/18 red-line. v. 29)
Common securitization platform, Ginnie Mae
Government
Fannie, Freddie, FHLB and other chartered guarantors
GSEs become private sector companies; charters repealed
Johnson-Crapo Bill
Federal Mortgage Insurance Corporation
FMIC Insurance Fund
Private market
GSEs are gradually wound down
Hensarling Bill
Private market, Ginnie Mae
Private market
Private market
Charters repealed after 5 years, GSEs placed in receivership
Under the Corker proposal, the GSEs’ preferred shareholders could possibly be made “whole”— or close to it—depending on the outcomes of the transition, according to Bloomberg sources. According to the draft (page 70): “Sec. 808 Senior Preferred Stock Agreements [Open pending further discussion.]”
© 2018 by Can eld Press, LLC. All rights reserved. www.can eldpress.com 10