February 05, 2014

White House pushing for GSE reform

Feb. 6, 2014 – White House officials are pushing for government-sponsored entity reform and the overhaul of Fannie Mae and Freddie Mac before the midterm elections, according to a report from The Wall Street Journal.

The Journal quotes White House National Economic Council Director Gene Sperling saying, "All of us … are making it understood that everyone needs to feel a sense of urgency in moving forward quickly while there is still a window for bipartisan progress in 2014." However, the paper said observers doubt that Congress can pass a bill this year.

NAFCU, in connection with housing finance reform, continues to push for guaranteed credit union access to the secondary mortgage market and loan pricing that prioritizes loan quality over volume.

In related news, after being sworn in in January, Federal Housing Finance Agency Director Mel Watt said his agency will reconsider fee hikes announced last year and that any changes in fees will not be implemented until further review.

The FHFA in December had announced plans to raise guarantee fees and the loan-level price adjustments beginning this March. NAFCU strongly opposed these increases.