Page 34 - September October 2018 Disruption Report Flip Book

FANNIE MAE AND FREDDIE MAC SEJPATN.U-AORCYT.20210818
better job of protecting taxpayers. Freddie Mac is similarly much better, with a substantially improved business model. We are absolutely not the government sponsored enterprise (GSE) of the past.”
“In these past 10 years we have made our conservatorship, in spite of its origins, a clear success for taxpayers, homeowners, and renters,” said Fannie Mae CEO Timothy Mayopoulos. “...It is true that Fannie Mae received more taxpayer support than any other company during the financial crisis,” he said. “Yet it has also returned more profits to taxpayers than any other company, measured on both an absolute basis and net of the support we received.” (Daily Dose, Seth Welborn, 09/27/18)
Senate Banking Committee schedules hearing on GSEs’ pilot programs
On November 14, the Senate Banking Committee will hold a hearing on Fannie Mae’s and Freddie Mac’s pilot programs. While no agenda for the hearing has been released, industry stakeholders believe the Committee will focus on the enterprises’ mortgage insurance coverage pilots, financing of mortgage servicing rights and (possibly) the GSEs’ loans to single-family rental entities. The hearing will “bring attention to why the FHFA [Federal Housing Finance Agency] is approving pilot programs at two enterprises that are in conservatorship,” wrote Cowen Washington Research Group’s Jaret Seiberg in a note to clients. “[There will likely be] “political pushback to FHFA’s decision to green light the EPMI [enterprise-paid mortgage insurance] pilots at Fannie Mae and Freddie Mac. To us, the argument will be that the enterprises are trying to replace a role that the private sector now provides.” (IMF News, Paul Muolo, 10/23/18)
Inside Mortgage Finance’s Paul Muolo wrote:
As the White House continues looking for the right candidate to head the Federal Housing Finance Agency, industry trade group officials and stakeholders have come to the conclusion that the days of new “pilot” programs for Fannie Mae and Freddie Mac may be over.
Over the past two years, pilot initiatives allowing for wholesale mortgage insurance arrangements, the financing of single-family rentals, and lines
of credit backed by mortgage servicing rights have been roundly criticized as “charter creep.” The fact that these initiatives were ever approved by
the FHFA angered critics of the government-sponsored enterprises and eventually led the Senate Banking, Housing and Urban Affairs Committee to schedule a Nov. 14 oversight hearing on the matter.
© 2018 by Canfield Press, LLC. All rights reserved.
www.canfieldpress.com 34