Bankers at Odds over GSE Recapitalization Proposal

National Mortgage News, June 6, 2017–Brian Collins (subscription)
A new proposal to recapitalize Fannie Mae and Freddie Mac so the two housing enterprises can exit conservatorship is dividing the banking industry. “This proposal is clearly self-serving and designed to confuse unsuspecting, innocent taxpayers into supporting a plan that is intended to line the pockets of hedge funds who invested in Fannie and Freddie,” said David Stevens, the MBA’s president and CEO. “MBA has been clear that the self-interests of stock speculators and profit seekers are not in the best interests of either the taxpayer or the housing system. The only solution to reforming Fannie and Freddie is through the legislative process.”