The Trump administration is expected to continue efforts to privatize Fannie Mae and Freddie Mac, having laid groundwork for this process in early 2023 with amendments to their financial agreements. Treasury officials stress the importance of an orderly transition from conservatorship to maintain housing market stability and prevent increased mortgage rates. The Mortgage Bankers Association advocates four principles for this release: ensuring an explicit backstop to maintain market confidence, establishing a level playing field for lenders, clarifying primary versus secondary market roles, and enhancing regulatory authority for the FHFA to oversee GSE operations effectively.
"The orderliness of the exit process is a theme for anyone talking about the exit, including Pulte in his confirmation hearing in February."
"MBA CEO Bob Broeksmit identified four overarching principles the trade group believes should frame the release of Fannie and Freddie: An explicit backstop, a level playing field, a bright line between primary and secondary market functions, and regulatory enhancements at FHFA."
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