Mnuchin: GSE Reform On Hold

first_img Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Joey Pizzolato is the Online Editor of DS News and MReport. He is a graduate of Spalding University, where he holds a holds an MFA in Writing as well as DePaul University, where he received a B.A. in English. His fiction and nonfiction have been published in a variety of print and online journals and magazines. To contact Pizzolato, email [email protected] Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Subscribe Fannie Mae Freddie Mac GSE Steve Mnuchin Treasury Department 2017-09-15 Joey Pizzolato Share Save The Best Markets For Residential Property Investors 2 days ago September 15, 2017 1,879 Views About Author: Joey Pizzolato The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img Back in June, the U.S. Senate Committee on Banking, Housing, and Urban Affairs, spearheaded by its Chairman, Senator Mike Crapo (R-Idaho), held a hearing on the necessity of reform for the government sponsored enterprises, Fannie Mae and Freddie Mac. Ginnie Mae’s model was a good starting point, he said.“Fannie and Freddie are currently earning profits, but if the housing market experiences a downturn, and at some point, it will, taxpayers could again be on the hook for many billions of dollars,” Crapo said in his prepared remarks. “Reform is urgently needed, and the Committee is actively exploring a variety of options.”The most important issues at hand, according to Crapo, were taxpayer protections, and preserving the interest of lenders, investors, and consumers.Now, however, Secretary of the Treasury Steve Mnuchin is of the opinion that both companies aren’t ready to be released from government’s conservatorship, according to a recent report by Bloomberg.Mnuchin told a panel at a Politico conference that the GSEs would continue turning over profits to the Treasury for the time being, and that any reform would most likely be put on the back burner until 2018.Since 2012, when the government changed the terms of Fannie and Freddie’s bailout from a rate of 10 percent dividend to virtually all the GSE’s profits, the two mortgage giants have paid the Treasury Department over $270 billion dollars in dividends. Mnuchin, after the conference, told reporters he expected dividends to continue to be paid.There has pressure from investors and hedge funds to secure a portion of that profit. According to Bloomberg, some firms, including Fairholme Funds Inc., Paulson & Co. and Perry Capital, have brought suit against the government, and various lobbying efforts have been prevalent in Washington to encourage quicker reform to remove the GSEs from government conservatorship.Six Senate Banking Committee Democrats took a less extreme stance in a letter sent to the Treasury Department and the Federal Housing Finance Agency on Tuesday, urging the agency to reduce dividend payouts and allow the GSEs to build capital, which they said would ultimately protect consumers—and the government—in the event another bailout is required.You can read the full letter below:  Print This Post Previous: LenderLive Announces New Chief Financial Officer Next: Bank of America is Taking on the IRS Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Related Articles in Daily Dose, Featured, Headlines Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Mnuchin: GSE Reform On Hold Home / Daily Dose / Mnuchin: GSE Reform On Hold Tagged with: Fannie Mae Freddie Mac GSE Steve Mnuchin Treasury Departmentlast_img

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