WASHINGTON—Warning that "in their current condition, Fannie and Freddie will fail in a downturn," Federal Housing Finance Agency (FHFA) Director Mark Calabria stressed the importance of reforming the government-sponsored enterprises (GSEs).
Of note, Calabria said the agency will know soon decide whether it needs to re-propose the GSEs' capital rule, which he described as "the most important rulemaking" he will make while at the FHFA.
Calabria made the comments during a House Financial Services Committee hearing this week. Treasury Department Secretary Steven Mnuchin and Housing and Urban Development (HUD) Secretary Ben Carson also testified. Ahead of the hearing, NAFCU reiterated its housing finance reform principles and called for congressional action to guarantee certain elements.
In addition, Calabria indicated the FHFA's willingness to let the GSEs' qualified mortgage (QM) patch expire. The CFPB has issued an advance notice of proposed rulemaking on the issue ahead of the patch's potential expiration, NAFCU said.