Fannie-Freddie Watchdog Vows Urgency in Housing Finance Overhaul By Bloomberg

0
40
© Bloomberg. Rows of houses stand in Las Vegas, Nevada, U.S.


© Bloomberg. Rows of houses stand in Las Vegas, Nevada, U.S.

TedsWoodworking Plans and Projects

(Bloomberg) — The new chief regulator for Fannie Mae and Freddie Mac says he takes the role with a “great sense of urgency” to address the biggest piece of unfinished business from the 2008 financial crisis: U.S. control of the mortgage-finance giants.

“The mortgage market was at the center of the last crisis, as it has been for many past financial crises,” Federal Housing Finance Agency Director Mark Calabria said Monday in his first official remarks as head of the agency. “I believe the foundations of our current mortgage finance system remain vulnerable.”

Calabria was sworn in last week as FHFA chief after he was confirmed by the U.S. Senate in a party-line vote on April 4. As head of the agency he played a role in creating while serving as a Senate aide, he will be integral to implementing the plan President Donald Trump announced last month to end U.S. control of Fannie and Freddie.

The mortgage-finance giants were seized by the federal government in 2008 as the housing market collapsed, and they received billions of dollars in taxpayer funds to weather the financial crisis and its aftermath. They have returned to profitability, but remain under conservatorship with lawmakers unable to reach agreement on a plan for overhauling the housing-finance system.

As FHFA director, Calabria has latitude to take some administrative actions without Congress, but he may be limited as the Treasury Department draws up its own reform blueprint in the coming months. Still, he may take methodical steps to reduce taxpayer risk and increase capital at the mortgage giants, according to a note from Beacon Policy Advisors.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here