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White House to Address Issues with Fannie Mae and Freddie Mac

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White House says it will address Fannie, Freddie issues

WASHINGTON – Nov. 16, 2018 – The Trump administration will address an overhaul of the nation's housing finance system "in the near future," according to White House economic adviser Andrew Olmem.

The government-sponsored enterprises (GSEs), such as Fannie Mae and Freddie Mac, buy mortgage loans from lenders that, in turn, have more money to loan to yet more homebuyers. However, the largely private GSEs were bailed out by the federal government during the economic recession, and they're not controlled by the government.

Most experts see risk in continued government ownership, notably the next time the economy has a downturn. But there has been general disagreement on how to move Fannie Mae and Freddie Mac back into private investors' hands, or even if that's the best way to assure long-term finances for U.S. homebuyers.

"The administration recognizes the importance of, and the need to tackle, housing finance reform," says Olmem, acting deputy assistant to the president for economic policy and special assistant for financial policy at the National Economic Council.

"It's been 10 years since the GSEs were placed into conservatorship. We believe it will be timely and appropriate to move forward and address this … It's something we're actively considering right now, and we will have more in the near future."

Olmem added that "it also depends on Congress … their appetite for housing finance reform is something we're eagerly waiting to see."

Source: Politico Pro (11/14/18) O'Donnell, Katy

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Information provided by Florida Realtors.  Click here to see the original article.

Reprinted with permission Florida Realtors. All rights reserved. 

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