The GSEs to Split from FHFA?
I found this info in the Mortgage News Daily e-newsletter by Jann Swanson on May 19, 2020:
“Fannie Mae and Freddie Mac (the GSEs) have taken what each is calling an important step toward ending their 12 years of operating under conservatorship. Each has announced they are about to issue a request for proposals (RFP) to secure a financial advisor to facilitate that move.
In a press release, Freddie Mac said the advisor selected will “advise the company on a range of issues, from capital considerations to the company’s business plan, and may ultimately play a role in any potential recapitalization transactions in the future”
Frankly, per my slightly cloudy and scratched crystal ball, any separation from their ‘manager’ FHFA won’t happen until after the next election, and probably long after that. This topic has been discussed at least for the last 5 years. Changing the direction of the iceberg from a rowboat with one oar is difficult!
A key issue is Congress’s thirst for the income the two GSEs generate since they paid off their bailouts, and it’s lots more than can be stored in your cookie jar, or as Johnny Carson’s Carnac the Magnificent character used to say… in the mayonnaise jar on Funk and Wagner’s porch.
Will separation happen? Maybe.
When or if it does, what will happen to the ‘appraisal forms’ as we know them, including the upcoming revised ones they say they are working on? Will they keep those in place, and both independently use them? I would say yes, as that’s how the GSEs have operated since 1986 when they took over appraisal forms design.
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