Differences Over Fannie and Freddie Future Remain
Fannie Mae and Freddie Mac have remained staples in the mortgage industry for years. Now, the debate on whether to strengthen the companies or wind them down is ongoing and doesn't seem to be reaching a point of agreement.
"The current plan is to keep Fannie Mae and Freddie Mac alive in a new system, a break from the Senate’s last effort," according to National Mortgage News.
"That sets up a new potential disagreement with Hensarling, who made it clear the two government-sponsored enterprises should be wound down."
Jeb Hensarling, House Financial Services Committee Chairman is proposing to the completely liquidated both Freddie Mac and Fannie Mae and replace the with a reworked version of Ginnie Mae. The proposed new version would issue mortgage-backed securities, according to the report.
Both Fannie Mae and Freddie Mac have been introducing new tools and resources for clients, so it looks as if they are more than confident about the ability to stick around.
There is still a ways to go before a decision is made but at the moment, things seem to be at a clear standstill. For more on the debate and the proposed plans for the future of Freddie Mac and Fannie Mae, click on the image above.