Home >> Daily Dose >> The GSEs’ Future Prospects
Print This Post Print This Post

The GSEs’ Future Prospects

According to Bloomberg, Mark Calabria is the possible nominee and leading candidate for the post of FHFA Director. Calabria is currently VP Mike Pence’s Chief Economist. He joined the Trump administration in February 2017. 

Speaking of the impact of his confirmation on GSEs, the article stated that Calabria had pushed for putting the GSEs into receivership—a process similar to bankruptcy. It pointed out that among other ideas, Calabria had previously called for the abolishment of the mortgage-interest deduction, a provision that benefited millions of homeowners.

He has also supported the elimination of government subsidies for 30-year fixed rate mortgages. However, Bloomberg sources stated that Calabria has sought to address concerns regarding his appointment among bankers and bond investors in private meetings by presenting a more tempered approach concerning Fannie and Freddie. 

The publication indicated that whoever the Trump administration chooses will wield significant influence over the housing finance market—the ramifications of which will be reflected in the functioning of Fannie Mae and Freddie Mac. The new FHFA director can affect mortgage rates and compel the GSEs to lower lender fees. The size of home loans that the agencies can buy may also be restricted. This will leave room for such borrowers to get their mortgages financed through the private market.

If appointed, Calabria will replace Mel Watt, an appointee of the Obama administration. Watt’s term ends in early January, and the Trump administration has discussed installing an interim FHFA Chief while it awaits Senate approval of a permanent nominee, the people said, quoted Bloomberg. 



About Author: Donna Joseph

Donna Joseph is a Dallas-based writer who covers technology, HR best practices, and a mix of lifestyle topics. She is a seasoned PR professional with an extensive background in content creation and corporate communications. Joseph holds a B.A. in Sociology and M.A. in Mass Communication, both from the University of Bangalore, India. She is currently working on two books, both dealing with women-centric issues prevalent in oppressive as well as progressive societies. She can be reached at [email protected].

Check Also

Single-Family Rent Growth Drops to Near Three-Year Low in July

CoreLogic's latest Single-Family Rent Index revealed single-family rent growth continued to moderate year-over-year in July, falling to 3.1%, representing the 15th consecutive month of deceleration.