Administration Working on Housing Finance Reform, Top Aide Tells Mortgage Bankers

In comments Monday during the Mortgage Bankers Association annual conference, Treasury Secretary Steven Mnuchin’s top housing advisor Craig Phillips told the crowd that the Trump administration is working to end the conservatorship of Fannie Mae and Freddie Mac.

Phillips, whose official title is counselor to the secretary, also said that the Treasury believes the government-sponsored enterprises’ (GSEs) federal charters needs to be removed.

“The administration advocates ending the conservatorship of Fannie Mae and Freddie Mac and returning them to private ownership,” Phillips said Monday. “Their charters should be removed from statute and their operations should be overseen by the primary regulator that has the authority to approve additional guarantors to introduce competition into the secondary mortgage market.”

In June, the Trump administration unveiled sweeping recommendations to overhaul the federal government. Included in that proposal was a section about privatizing the GSEs and ending conservatorship.

CUNA and the state leagues have called on Congress and the administration to work together to ensure that credit unions continue to have access to a viable and competitive secondary mortgage market under any proposed housing finance system reform.