Fannie/Freddie Reform Plan Expected Soon

According to a Fox News report, the Treasury Department has submitted to the White House its proposal to reform government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, with the final plan expected to be released after Labor Day.

In March, President Trump issued a presidential memorandum initiating reforms to the housing finance system. The memo included specific instructions to guide the Treasury's and Department of Housing and Urban Development's reform efforts.

Previous reports on the reform plan indicated that the GSEs will be released from conservatorship and allowed to rebuild capital.

The Federal Housing Finance Administration (FHFA) is currently working to address a number of other housing issues. It recently finalized a rule to evaluate new credit scoring models for use by the GSEs. It is also expected to finalize its capital requirements proposal soon.

Housing finance reform, and the need to ensure credit unions have access to a viable secondary mortgage market, is among the issues being discussed during the NJCUL’s in-district meetings with members of the state’s congressional delegation. Three of those meetings are taking place this week: Rep. Bill Pascrell, Jr. (D-9), today in Paterson; Rep. Tom Malinowski (D-7), Wednesday afternoon in Somerville; and Rep. Frank Pallone (D-6), Thursday morning in Long Branch.

The League schedules in-districts meetings with members of state’s congressional delegation to enable credit union advocates to meet with their representatives in Congress without having to travel to Washington. The meetings are open to all NJCUL member credit unions. Anyone interested in participating should contact NJCUL Vice President of Corporate & Governmental Affairs Chris Abeel at cabeel@njcul.org or 800-792-8861, ext. 127.