Watt has told employees and others close to him that he plans to stay at his post after Trump becomes president to serve out a term that doesn’t end until January 2019.
Watt’s speech identified risks to the long-term health of the country’s housing finance system because of the unsettled nature of Fannie Mae and Freddie Mac.
Reform of the GSEs and housing finance may come, but it’s more likely to come in small bites rather than the big prix fixe Johnson-Crapo or the PATH Act.
The Federal Housing Finance Agency, which regulates Fannie and Freddie, had previously said it was considering plans to drop the limits as soon as Jan. 1, which triggered strong blowback from home builders, real-estate agents, and mortgage bankers. Edward DeMarco,…
Amid the uncertainty of timing, Trump’s appointments will have a major impact on the future of the post-crisis financial regulatory structure.
If there is one feature of a reformed housing finance system that has broad buy-in, it is that private capital should take the majority of mortgage credit risk.