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Government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac are asking the Treasury Department for $3.7 billion and $312 million, respectively, to cover losses suffered during 2017. NAFCU has supported efforts to allow the GSEs to rebuild their capital buffers, which would reduce their need to draw taxpayer funds.

Fannie Mae on Wednesday said it had a net loss of $6.5 billion in the fourth quarter of 2017 and needs $3.7 billion from the Treasury by the end of March. Freddie Mac reported a net loss of $3.3 billion and had a deficit of $312 million that would require Treasury funds to cover.

The Treasury and Federal Housing Finance Agency (FHFA) struck a deal in December that allowed the GSEs to reinstate $3 billion in their capital reserves, an action supported by NAFCU. However, FHFA Director Mel Watt acknowledged that a reduction in the corporate tax rate caused by tax reform would require the GSEs to draw of the Treasury, even with the reinstated funds.

Fannie Mae reported a loss of $9.9 billion in federal income tax as a result of the corporate tax cut, and Freddie Mac lost $5.4 billion.

NAFCU remains engaged with lawmakers and agency officials to advance the association's core principles for housing finance reform. The FHFA recently put forward housing finance reform objectives to leaders of the Senate Banking Committee, and draft legislation from Senate Banking members Bob Corker, R-Tenn., and Mark Warner, D-Va., outlines new roles for Ginnie Mae and the FHFA, while establishing conditions for transition from a GSE model, to one with multiple guarantors and guaranteed access for small lenders.

Credit unions have a strong role in maintaining the health and stability of the nation's housing market, especially as it relates to the secondary mortgage market. NAFCU has led efforts to give credit unions equal access to the market and fair pricing based on loan quality rather than volume of loans.