WASHINGTON–With a new administration in power, the Mortgage Bankers Association is calling again for the end to the government conservatorship of Fannie Mae and Freddie Mac.
Instead, the trade group is advocating for a new, durable foundation for the secondary mortgage market. To that end, it has released a “paper which outlines a preferred end-state, the principles that should be incorporated in any future system, the key components and guardrails of the end-state, and emphasizes the need to ensure a smooth transition to a reformed secondary mortgage market.”
The paper has been released at the same time several lawsuits have been filed by shareholders in both companies over the fact profits go to the federal government.
In the paper, the MBA said reforms already taken by the Federal Housing Finance Agency (FHFA) have made tremendous progress in stabilizing the companies while paving the way for future reform. What’s missing, the paper suggests, is a path forward. A copy of the paper can be found here.