White House to work with Congress on housing finance reform

The White House will work with Congress to reform the nation’s housing finance system and government-sponsored enterprises (GSEs), according to reports from the Wall Street Journal. NAFCU has urged the Trump administration and Congress to work together on a comprehensive solution to housing finance reform, and has argued that the continued conservatorship of the GSEs is unsustainable.

This signals a shift from comments made by Federal Housing Finance Agency (FHFA) Acting Director Joseph Otting at a recent staff meeting where he said that a housing finance reform plan from the administration and Treasury Department could come within the next month. After that, Otting said he expects significant progress to be made within “six to 18 months.” Otting said that the FHFA Director and Treasury had the authority to make significant changes to the GSEs without legislation.

The Wall Street Journal article also indicates the plan will be released soon, but clarified that the administration will work with Congress to ensure safeguards are in place to protect taxpayers.

 

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