Washington, D.C. – Today, in reaction to the Federal Housing Finance Agency 2013 Scorecard, which sets out the agency’s work plan for the coming year, CAP Director of Housing Finance and Policy Julia Gordon released the following statement:
The new scorecard illustrates how the Federal Housing Finance Agency is using its virtually unlimited conservatorship powers to transform Fannie Mae, Freddie Mac, and the future of housing finance in America.
While bringing the securitization activities under one roof makes sense, make no mistake about it: This plan signals a fundamental change to how these government-sponsored mortgage giants operate. This initiative and other policy decisions outlined in the scorecard will impact American families broadly—whether they own their home, hope to become homeowners someday, or are simply seeking affordable rental options—and will lay the foundation for the shape of the market for many years to come.
These decisions are far too important to leave to one single agency whose deliberations largely take place behind closed doors and whose officials are neither elected nor confirmed. FHFA should have a presidentially appointed leader, and Congress and the Obama administration should present their plans for the housing finance system to the American people without further delay.
While many of the initiatives were familiar to those who have been following FHFA’s work, Acting Director Edward J. DeMarco added some new detail around the agency’s intentions to create a single securitization platform for the enterprises, indicating that this platform would be run by a new company structured as a joint venture between Fannie Mae and Freddie Mac.
To speak with a CAP expert on this topic, contact Katie Peters at firstname.lastname@example.org or 202.741.6285.
Related resources from the Center for American Progress:
- It’s Time to Talk about Housing by Julia Gordon and John Griffith
- Building a New Infrastructure for the Secondary Mortgage Market by the Mortgage Finance Working Group
- A Responsible Market for Housing Finance by the Mortgage Finance Working Group
- 7 Things You Need to Know About Fannie Mae and Freddie Mac by John Griffith