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Mnuchin: GSEs Won’t Stay ‘As-is’ for Long

Fannie Mae and Freddie Mac should prepare for change—and sooner rather than later. According to Steven Mnuchin, the Trump administration won’t keep the status quo for long.

Mnuchin discussed the GSEs and housing reform in general as part of an interview with reporter Maria Bartiromo on Fox Business’ “Mornings with Maria” on Monday. Though he didn’t go into too much detail, he did say that privatizing the two Enterprises wasn’t necessarily the plan.

“I haven’t said they’d be privatized,” Mnuchin said. “What I have said is I’m committed to housing reform. We’re committed to not leaving them as-is for the next four years.”

The main goal of reforming the system? Mnuchin said its to keep housing affordable without putting American taxpayers in harm’s way.

“We want to make sure that there is ample credit for housing,” Mnuchin told Bartiromo. “It’s a very, very important part of the economy, but we also want to make sure we don’t put the taxpayers at risk. And as you know, those two companies only exist because we have a giant line from the Treasury that supports them.”

Mnuchin also talked briefly about a recent bill introduced by Kevin McCarthy in the House that aims to eliminate Fannie and Freddie’s exemption from the Freedom of Information Act. This Act, according to Bartiromo, allowed the Obama administration to reallocate GSE funds toward other parts of the government—including the Affordable Care Act—without public knowledge.

“They used the profits of Fannie and Freddie for other parts of the government, while they kept taxpayers at risk,” Mnuchin said.

Bartiromo and Mnuchin also covered the recently proposed tax plan, which aims to lower taxes on middle-income earners and businesses. To see the full interview, visit FoxBusiness.com.

The Trump administration has been making waves in the housing and financial services industries as of late. Two weeks ago, President Trump issued two executive orders, calling for a review of “too big to fail” as well as oversight of these organizations.

Mnuchin also came out in support of the Financial CHOICE Act last week, which is proposed as an alternative to the controversial Dodd-Frank Act.

About Author: Aly J. Yale

Aly J. Yale is a longtime writer and editor from Texas. Her resume boasts positions with The Dallas Morning News, NBC, PBS, and various other regional and national publications. She has also worked with both the Five Star Institute and REO Red Book, as well as various other mortgage industry clients on content strategy, blogging, marketing, and more.
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