dcsimg
Blog
July 29th, 2010

White House: Fannie, Freddie Reform Proposal by January 2011

by

 

According to the Treasury, the White House will present a proposal for the reform of Fannie Mae and Freddie Mac to Congress by January 2011:

[Yesterday], the Obama Administration announced expanded opportunities for public engagement on the future of our nation’s housing finance system, including Fannie Mae and Freddie Mac. These events, which will include a major conference in Washington, D.C., will help provide critical public input as the Administration continues its work developing a comprehensive housing finance reform proposal for delivery to Congress by January 2011.

We really don’t see a coherent, well-thought-out proposal being delivered to lawmakers in less than six months. Here are a few reasons why:

1. There will be a new Congress. Congressional elections occur in November and the new Congressmen will just be getting to work by the start of the year.

2. Six months is not enough time. “The complexities of the GSEs, their role in the market dysfunction and how to create new entities will require exhaustive review and study to produce solid proposals for discussion,” said HSH VP Keith Gumbinger. “Six months isn’t nearly enough time.”

3. Getting it wrong. This reason is short and simple: getting the reform of Fannie and Freddie wrong could be devastating to the market’s recovery.

4. They may not want to alter it. It’s certainly not out of the realm of possibility that come January, the White House will delay the debate of Fannie and Freddie for another year so it becomes another administration’s problem to worry about. Furthermore, by 2012, the market may have recovered to a point where Fannie and Freddie can re-emerge into the market without having to undergo too many changes.

Share and Enjoy:
  • email
  • Print
  • RSS
  • Add to favorites
  • Yahoo! Bookmarks
  • Facebook
  • Twitter
  • Technorati
  • Digg
  • del.icio.us
  • Google Bookmarks
  • StumbleUpon
  • Yahoo! Buzz
  • Mixx
  • BlinkList
  • Live
  • Reddit

2 Responses to “White House: Fannie, Freddie Reform Proposal by January 2011”

  1. Fannie, Freddie May Forgive Mortgage Debt For Some Borrowers: Reuters | Get a Second Chance Bank Account Says: August 10th, 2010 at 2:58 pm

    [...] White House: Fannie, Freddie Reform Proposal by January 2011 | HSH … [...]

  2. Amy bradley Says: October 10th, 2011 at 7:28 pm

    I was about to get my home foreclosed, so I went to a lawyer for a mortgage reconsolidating. He offered to reconsolidate my mortgage for 2000 dollars. That’s to steep for my income, so I did a little research and found found a company that does the same thing. So I called the number 18885379157 for this mortgageadvanceonline.com company. She told me a lil about herself and how she started this company with running into the same issues I have. She gave me a consolidation and reconsolidated my mortgage for 600. It saved my house, Ian very grateful for that.

Leave a Comment

Receive Updates via Email

Delivered by FeedBurner

About the HSH Blog

HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.

Our bloggers:

Tim Manni

Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

Connect With Us

  • rss feed icon
  • facebook icon
  • twitter icon

Compare Lowest Mortgage Rates

$