Mat Ishbia shares the positive outlook for the mortgage industry under Trump’s new administration. He highlights the importance of innovation and aligning Fannie and Freddie with the industry’s mission to make homes affordable for all.https://t.co/pgqI4oJuA8
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“It’s complicated,” he said. “In order to get GSE privatization done, you’re going to have to have a real sit-down on what the right G [guarantee] fees are, what the right percentage of bond holdings is that they’re supposed to have within the enterprise, whether they can generate enough of a return to attractive private capital… the things that have been worked on in the past and thought about, but they need to be dusted off.”
Issues to be ironed out, he added, include tweaking the GSEs’ business models to generate enough returns to raise the capital they need, a less straightforward task than freezing spending at specific departments or signing executive orders.
That’s for the best, according to Ryan, with as comprehensive and well-planned a policy as possible necessary to make the process a smooth one.
“Presumably there’s work going on in the background here but unless you just want to get out there with something that’s half-baked at best, you’re going to have to do a little work,” he said. “It’s doable, but complicated.”
What would it take to end conservatorship?
Meeting those capital adequacy standards would be a key step in ending the government’s stewardship of Fannie and Freddie, meaning they can operate independently without federal support.
