Regardless of whether Congress could act, proponents don’t seem to fully appreciate the potential unintended consequences of a future without Fannie Mae and Freddie Mac.
A regulatory plan to create new restrictions on banks’ executive compensation practices appears dead – but changes since the financial crisis may have made the proposal largely obsolete anyway.
British bank to pay $5.5 billion to settle mortgage issues, but faces Justice Department fine; Payments company offers restaurants $10,000 to stop accepting cash.
Royal Bank of Scotland Group agreed to pay $5.5 billion to settle the second of three major U.S. mortgage-backed securities probes the government-owned lender must overcome before it can fully return to the private sector.
With lawmakers bracing for a major policy undertaking to reform the government-sponsored enterprises, they can take comfort that they don’t need to start from scratch.
The Senate is set to begin teeing up housing finance reform discussions at a Banking Committee hearing on Thursday, but many are skeptical that Congress will be able to succeed where it has failed in the past.
A key question for the future of housing finance is whether large and small lenders will both be able to compete, or will a new system favor Wall Street giants?
The ICBA backs a plan to recapitalize Fannie and Freddie through retained earnings and public offerings, but other groups see it as a self-interested proposal to help GSE stockholders.
