2 minute read
What’s Next for Fannie and Freddie?
Looking Ahead As a Biden appointee, Thompson will likely focus on eliminating economic inequities. Thompson has expressed a commitment to ensuring the housing fi nance system operates “in a safe and sound manner,” but said she’s concerned about “widespread lack of affordable housing and access to credit, especially in communities of color.” She views FHFA’s duty as ensuring that “all Americans have equal access to safe, decent and affordable housing.”
On top of that, Thompson is likely to revisit recent changes made by her predecessor in anticipation of ending the conservatorship established in 2008. Those changes make the GSEs riskier and less apt to support their charter duties. For now, Thompson will likely shift the focus away from ending the conservatorship.
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These goals align tightly with the National Association of REALTORS®’ (NAR) agenda. We believe that transitioning the GSEs to a utility model provides the most effi cient and viable approach. Under NAR’s proposal, the GSEs would be re-chartered as privately held utilities, with Fannie and Freddie’s products, rates and operations remaining under government oversight to ensure compliance with their mission. This public-private collaboration is the most promising model to uphold three imperatives for the market and consumers under all economic conditions: maximizing credit access, minimizing taxpayer risk and keeping costs down.
During the pandemic, Fannie and Freddie have played a pivotal role in helping the market survive and thrive. Moving forward, they will remain central to the housing market and overall economy, and NAR will continue to serve in a key advisory role, offering expertise and immediate “boots-on-the-ground” feedback as we work in close partnership with senior government offi cials, academicians and economic leaders on these vital issues.
Rest assured that NAR is fi ghting every day on your behalf to preserve competition, maintain liquidity, support underserved markets and protect the 30-year fi xed-rate mortgage for your clients. RE
Learn more and fi nd out how to get involved at NAR.realtor/GSEvision.
Ken Fears is a senior policy representative, Banks, Lending & Housing Finance, for the National Association of REALTORS® .
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