-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI PodcastsFixed IncomeFI Markets AnalysisCentral Bank PreviewsFI PiFixed Income Technical AnalysisUS$ Credit Supply PipelineGilt Week AheadGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction CalendarPolitical RiskMNI Political Risk AnalysisMNI Political Risk - US Daily BriefMNI Political Risk - The week AheadElection Previews -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
-
Credit
Credit
Real time insight of credit markets
-
Data
-
Global Macro
Global Macro
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
Global MacroDM Central Bank PreviewsDM Central Bank ReviewsEM Central Bank PreviewsEM Central Bank ReviewsBalance Sheet AnalysisData AnalysisEurozone DataUK DataUS DataAPAC DataInflation InsightEmployment InsightGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance Calendars EZ/UK Bond Auction Calendar EZ/UK T-bill Auction Calendar US Treasury Auction Calendar Global Macro Weekly -
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessMNI POLICY: Mnuchin: Privatized Fannie, Freddie to Aid Market
Senators question whether plan will make mortgages more expensive
By Brooke Migdon
WASHINGTON (MNI) - Senators questioned whether U.S. Treasury Secretary
Steven Mnuchin's proposal to overhaul the housing finance system could address
affordability concerns, hinting at a roadblock in the Trump administration's bid
to privatize Fannie Mae and Freddie Mac.
Fannie and Freddie back half of the nation's mortgages and have an
obligation to provide low-income borrowers with approximately a quarter of the
home loans they back. Under the Treasury plan proposed last week, they would pay
an annual fee to the government in exchange for loans that are federally
guaranteed, reducing the risk of a bailout. Mnuchin told a Senate committee
Tuesday this guarantee would be extended to approved competitors to "level the
playing field" between Government-Sponsored Enterprises and private competitors.
"The Trump plan will make mortgages more expensive and harder to get,"
Senator Sherrod Brown (D-Ohio) said Tuesday. "We shouldn't have to tell the
president we have an affordable housing crisis in this country. We all know it
and we all see it."
Mnuchin said the GSEs would operate under a "utility model" with a
regulated rate of return and the Federal Housing Finance Agency should "maintain
regulation and oversight pricing of the guarantee." President Trump has not
"explicitly" approved the plan, Mnuchin said Tuesday, and it would also need
Congressional approval.
Treasury's proposal said the plan to remove government backing of Federal
National Mortgage Association and Federal Home Loan Mortgage Corporation would
foster competition and settle "unfinished business" from the 2008 financial
crisis. Equitable loan and housing groups have criticized Treasury's proposed
reforms, stating that more expensive mortgages will disproportionately impact
minority borrowers and under-served communities.
Mnuchin maintained the White House would practice caution, voicing support
for initiatives designed to help low-income home-buyers such as the 30-year
mortgage. "We are not going to jeopardize that for hard-working Americans," he
said.
President Trump tasked Mnuchin with developing a plan for housing finance
reform earlier this year, stipulating the plan should establish regulatory
reform of the GSEs so as to minimize the "risks they pose to the financial
stability of the United States."
Following the more than 3 million foreclosures filed during the 2008
financial crisis, Fannie Mae and Freddie Mac were taken over by the federal
government in a $200 billion bailout from taxpayers.
--MNI Washington Bureau; +1 202 371 2121; email: brooke.migdon@marketnews.com
[TOPICS: M$U$$$,MC$$$$,MGU$$$]
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.