Bloomberg, June 21, 2018: Fannie-Freddie rise after White House proposes privatization
National Community Reinvestment Coalition CEO Jesse Van Tol assailed the plan as an “assault on America’s working class” that shows the sway industry lobbyists have over the Trump administration.
“I understand the desire to tackle GSE reform,” Van Tol said in a statement. “The enterprises are more profitable, more stable and better-regulated than at any point in history. But GSE reform without an affordable-housing mandate is not reform, it’s a retreat.”
Private shareholders have pushed for the administration to work with the Federal Housing Finance Agency, the independent agency that currently oversees Fannie and Freddie, to recapitalize and release the companies without Congress. Such a move could become easier early next year, once Trump can replace current FHFA Director Mel Watt with his own nominee.
