The Acting Director of the Federal Housing Finance Agency (FHFA), Edward J. DeMarco, recently sent a memo to members of Congress outlining a strategic plan for the next phase of the conservatorships for the Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac. The plan calls for a careful scale down of the GSEs operations, limiting their activities and reducing their overall role in the market and beefing up the secondary mortgage market infrastructure with a single securitization platform and transparent, standardized servicing procedures. DeMarco’s plan specifically outlines three strategic objectives for the next phase of the conservatorship:
- Build. Build a new infrastructure for the secondary mortgage market;
- Contract. Gradually contract the Enterprises’ dominant presence in the marketplace while simplifying and shrinking their operations; and
- Maintain. Maintain foreclosure prevention activities and credit availability for new and refinanced mortgages
Click here to read DeMarcos’s strategic plan for the GSEs.
