The White House has released its plan to reform the nation’s housing finance system and privatize Fannie Mae and Freddie Mac. The recommendations include: simplifying the Qualified Mortgage rule and eliminating the so-called QM patch that allows Fannie and Freddie to sidestep some regulations; reducing unnecessary regulatory impediments for private-label securitization; and promoting private-sector competition, according to Housing Wire.
Most of these plans do not require input from Congress.
Tomorrow (Sept. 10, 2019), the U.S. Treasury Secretary Steven Mnuchin is set to testify on the reform plan before the Senate Banking Committee.
How does this impact you?
Personal Mortgage Consultant, Dave Horton, explains:
The privatization of Fannie Mae and Freddie Mac will have many meanings if President Trump is successful in getting Congress to initiate a bill for approval. These two largest providers of home mortgage funds provided by approved lenders is vital to giving homeowners and investors competitive financing terms for consumers and our housing industry.
Both Fannie and Freddie Mac have been around a long time and currently are positioning themselves without government assistance making money on their own since conservatorship took place years ago. Bottom line for home ownership and multi-family investors, we need Fannie and Freddie to continue operating until something better comes along. Having a healthy housing industry is vital for consumers and the many people who work in this sector of the economy.
If you have any questions or comments, please reach out to Dave at firstname.lastname@example.org