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FANNIE MAE AND FREDDIE MAC MAJAYN-UAJRUYNE20210818
COMPARISON OF SAFETY AND SOUNDNESS BLUEPRINT TO OTHER PROPOSALS
Figure 10: Comparison of Safety and Soundness Blueprint to Other Proposals23
‘KILL’ GSES
2013 SENATE BILL
URBAN INSTITUTE PLAN1
RECAP & RELEASE
2017 MBA PLAN
2017 ICBA PRINCIPLES
SAFETY AND SOUNDNESS BLUEPRINT
Ends the failed business
model arbitraging ✔ ✔ ✔ ? ✔ ✔ cheap funding
✔
Puts new private capital in a first loss position
✔✔✔✔✔✔
✔
Maintains the 30-year mortgage
✖✔✔✔✔✔
✔
Provides explicit, paid-for,
support to ensure stable ✖ ✔ ✔ ? ✔ ✔ market for legacy obligations
✔
Feasibly maintains market
access to non-bank and non- ✖ ✖ ✔ ✔ ✔ ✔ SIFI mortgage originators
✔
Maintains affordable housing initiatives
✖✖✔?✔✔
✔
Does not disrupt mortgage rates, home prices, TBA markets and other Agency- related financial markets
✖✖✖✔✔✔
✔
Allows Treasury to capture
proceeds from monetizing ✖ ✖ ✖ ✔ ? ✔ GSE warrants
✔
Explicitly limits government support, and allows this limited support to be reduced over time
✔✖✖?✖✖
✔
Quick and feasible implementation
✖✖✖✖✖✖
✔
Source: Blueprint for Restoring Safety and Soundness to the GSEs, Moelis & Company LLC, June 2017
Blueprint for Restoring Safety and Soundness to the GSEs 26 © 2018 by Canfield Press, LLC. All rights reserved. www.canfieldpress.com 35