Will affordable, 30-year FRMs go away after GSE reform?

WASHINGTON – May 16, 2019 – Federal Housing Finance Agency (FHFA) Director Mark Calabria spoke to hundreds of Realtors and industry leaders regarding his vision for the future of Fannie Mae and Freddie Mac (government sponsored enterprises, or GSEs) at the National Association of Realtors®‘ (NAR) Regulatory Issues Forum in Washington, D.C.

At the same forum, NAR highlighted its housing finance reform plan, which proposes a utility model to ensure a reliable and affordable source of mortgage capital for Americans going forward.

Bethany McLean, a contributing editor at Vanity Fair and author of “Shaky Ground: The Strange Saga of the U.S. Mortgage Giants,” moderated the event.

McLean led Tuesday’s discussion with Calabria, diving deeper into the former NAR economist’s priorities in his new role at the helm of FHFA.

“One of the things I’m going to be trying to do across the board is [determine how we] level the playing field to where all large financial institutions have similar capital,” Calabria told the group. “[That will ensure] the GSEs have a good business model because they have good management and good execution – not because they have lower standards than everyone else – and so we have that capital there to protect the taxpayer. At the end of the day, I think that can be done in a way that really does not adversely impact the consumer.”

Source:  © 2019 Florida Realtors®

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