WASHINGTON—Federal Housing Finance Agency (FHFA) Director Dr. Mark Calabria said he expects Fannie Mae and Freddie Mac (GSEs) to be released from government conservatorship.
Calabria noted his desire for Congress to lead the effort by passing housing finance reform first, and added the FHFA will wait "at least an entire Congress" before it acts to release the GSEs from government control.
Calabria said he believes the GSEs must adequately rebuild capital levels before being released.
"Even if it was the largest IPO in history, it's not clear that that could do that in one fell swoop," Calabria said. Capital ratios at the GSEs would need to "look like any other large financial institution" before being released, he added.
Outline Released
In March, the Trump administration released an outline for housing-finance reform that instructed the Departments of Treasury and Housing and Urban Development to develop reform plans. Both agencies are expected to complete their reports in the coming months.
“NAFCU is leading efforts to ensure credit unions' unfettered access to the secondary mortgage market in any housing finance reform and has urged the Trump administration and Congress to work together on a comprehensive solution. Dr. Calabria supports NAFCU's position on allowing the GSEs to rebuild capital,” the trade association said.