February 5th, 2019
On Friday, Senate Banking Committee Chairman Mike Crapo (R-ID) released the outline to a new proposal on housing finance reform, including a call for the privatization of Fannie Mae and Freddie Mac. The proposal includes many components of other reforms that have been popularly deliberated over by analysts, legislators, and thought leaders. According to Crapo, the priorities outlined in this plan are "to establish stronger levels of taxpayer protection, preserve the 30-year fixed-rate mortgage, increase competition among mortgage guarantors, and promote access to affordable housing,” among others. So far, the proposal has gained a lot of support from institutions such as the MBA, the FHFA, the National Association of Home Builders, the National Association of Federally Insured Credit Unions, and more.
Mortgage professionals should keep an eye on this proposal as it may have tangible effects if passed by Congress.