State of Play for GSE Reform (the elimination of Fannie & Freddie)

Julie C. Nichols General

Mortgage Bankers Association – David Stevens

This is the letter Mr. Stevens published to all Mortgage Banker Association Members:

Dear MBA Member,

Five years after being placed in conservatorship, Fannie Mae and Freddie Mac continue to play a central role in the US mortgage market. Conservatorship is by definition a temporary environment. These two companies simply cannot stay in this form indefinitely. However, there has been a recent increase in activity in Washington that suggests there may be movement toward defining the future of the two GSEs:

•Comprehensive GSE reform bills have been introduced in Congress in recent months, with the House Financial Services and Senate Banking Committees having taken or committed to action on reform.

•The President gave a major speech on housing finance reform, where he once again noted the Administration’s intention to wind down Fannie and Freddie.

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