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Watt Weighs as Lawmakers Seek Elusive Balancing Act on GSE Reform

Monday, January 22, 2018

There seems to be a little more common ground on GSE reform but the terrain is rocky and has deep chasms so it could be slow going before Congress and the Administration can finally resolve the issue at the heart of the financial crisis of ten years ago. Federal Housing Finance Agency (FHFA) Director Mel […]

Capital Buffer Deal May Buy Enough Time to Get Down to Business on GSE Reform

Thursday, December 21, 2017

The announcement today that Fannie Mae and Freddie Mac will begin maintaining a $3-billion capital baseline is the first tangible demonstration in five years that officials in Washington actually want to protect taxpayers and end the stalemate on reforming the government sponsored enterprises. Beginning next year, Fannie and Freddie were to have had their capital […]

Mnuchin Adopts Good Starting Points on GSE Reform

Monday, November 27, 2017

From the Wall Street Journal’s CEO Council annual forum, a two day event where the world’s most ambitious leaders connect, came a tweet from the WSJ Capital Journal account which amplified remarks from Treasury Secretary Steven Mnuchin:- “We do want to preserve the 30-year mortgage.. and we don’t want to put taxpayers at risk. Those […]

Corporate Tax Cut Could Expose Net Worth Sweep Folly

Monday, November 20, 2017

As a $1.5-trillion tax measure moves incrementally toward becoming law, Washington policymakers could have to confront the consequences of the raid on Fannie Mae and Freddie Mac’s capital that has been going on the last five years. The House of Representatives approved a sweeping bill to reduce taxes and reform the tax code November 16 […]

The Net Worth Sweep’s Moral and Practical Deficiencies

Monday, November 13, 2017

A new paper by John Berlau at the free-market oriented Competitive Enterprise Institute, not surprisingly, takes a dim view of the historic and persistent roles of Fannie Mae and Freddie Mac in the home mortgage market. It takes an equally dim view of the government’s lack of respect for the rights of shareholders in the […]