"On Friday, 46 independent mortgage banks (IMBs) jointly sent a letter to Treasury Secretary Scott Bessent and FHFA Director Bill Pulte, laying out priorities for IMBs for a successful Fannie Mae/Freddie Mac exit from conservatorship. Spearheaded by the Community Home Lenders of America (CHLA), the only national group that exclusively represents IMBs, this IMB sign-on letter laid out five key recommendations designed to maintain a level playing field, maintain consumer choice, protect smaller lenders and promote healthy competition."
"Why is this important for non-bank mortgage lender/servicers? First, because all the signs are there that the Trump Administration is serious about carrying out an exit from conservatorship. A month ago, it was reported that the Trump Administration is doing serious planning for a secondary offering of Fannie and Freddie stock by the end of the year. And more recently, both Treasury Secretary Bessent and FHFA Director Pulte have mentioned the coming sale of portions of both GSEs to investors."
Forty-six independent mortgage banks sent a joint letter to Treasury Secretary Scott Bessent and FHFA Director Bill Pulte outlining five priorities for a successful Fannie Mae and Freddie Mac exit from conservatorship. The sign-on letter, led by the Community Home Lenders of America, calls for measures to preserve a level playing field, maintain consumer choice, protect smaller lenders and foster healthy competition. The Trump Administration is reported to be planning secondary offerings and sales of GSE portions to investors. A post-conservatorship Fannie and Freddie would face pressure to generate shareholder returns, risking volume discounts to large lenders, risky lending and market concentration without clear safeguards.
Read at www.housingwire.com
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