In January 2019, Trump appointed Mark Calabria, who supported ending the conservatorship, as director of the Federal Housing Finance Agency (FHFA), the agency established to oversee Fannie Mae and Freddie Mac when they were placed under federal control. THE PRIVATIZATION OF FANNIE MAE AND FREDDIE MACĪlong with reinstating the risk-sharing program eliminated under Trump, Biden is not expected to continue the Trump administration’s efforts to release Fannie Mae and Freddie Mac from the federal conservatorship instituted in 2008. Biden's proposed increase, amounting to an additional $20 million each year if applied over the 10-year period, a poses a challenge for the two acquiring sufficient capital to exit the conservatorship, an effort supported not only by the Trump administration, Treasury Department, and the FHFA, but also Fannie Mae and Freddie Mac leadership and shareholders as well The Housing Trust Fund has been funded entirely by Fannie Mae and Freddie Mac through assessments on new business, for which the fund has allocated between $219 million and $276 million each year for eligible projects between 20, with an increase to $322.5 million in fiscal year 2020. Ī notable inclusion in his plan is developing a new Affordable Housing Fund with a proposed cost of $100 billion, including $65 billion proposed for new incentives to develop and rehabilitate low-cost housing where there’s a shortage and boosting the existing Housing Trust Fund, which preserves and constructs housing designated for low-income families, by $20 billion. Marcia Fudge, a democrat from Ohio – and housing finance agencies to “provide risk-sharing arrangements to provide more insurance and credit for FHA multifamily loans,” according to the HUD website. He also plans to reinstate a risk-sharing program developed to allow HUD – to be led by Rep. His plan includes a new “Bill of Rights” for homeowners and renters to prevent mortgage brokers from issuing predatory loans and advancing foreclosures when homeowners are in the process of receiving loan modifications, while also giving borrowers the right to seek financial redress from mortgage lenders and services if those rights are violated. In early 2020, Biden released his housing plan with an anticipated cost of $640 billion over 10 years with a focus on increasing affordable housing, bolstering tenant and homeowner rights, and providing housing assistance. While he is not expected to continue the Trump administration’s efforts to privatize Fannie Mae and Freddie Mac, a Supreme Court case filed by shareholders of the two entities may bring that battle to the forefront sooner than anticipated. The tide of housing-finance reform is expected to drastically shift under the new administration after President Joe Biden officially clinched his win in the 2020 election, with Biden’s proposed $640 billion housing plan focusing on increasing affordable housing.
0 Comments
Leave a Reply. |