November 30, 2016

Treasury secretary pick Mnuchin eyes privatizing GSEs

Steve Mnuchin, a former Goldman Sachs executive that President-elect Donald Trump plans to nominate as Treasury secretary, said he plans to take Fannie Mae and Freddie Mac out of government conservatorship, and restructure and privative them.

Mnuchin, who faces a confirmation process in the Senate, delivered his comments during a Fox Business interview on Wednesday. "We will make sure that when they are restructured, they are absolutely safe and don't get taken over again," he said during the interview, reported by Bloomberg. "But we've got to get them out of government control."

House Financial Services Committee Chairman Jeb Hensarling, R-Texas, with whom Trump also met regarding the top Treasury post, has his own plans to wind down the government-sponsored enterprises within five years.

Last month, Freddie Mac and Fannie Mae reported net incomes of $2.3 billion and $3.2 billion, respectively, in the third quarter of 2016.

The GSEs have been under the FHFA's conservatorship since 2008. NAFCU continues to push for housing reform that guarantees credit unions access to the secondary housing market and for fair pricing based on loan quality instead of volume.