B. Riley FBR initiated equity coverage of the mortgage giant, citing housing finance reform proposals that could result in Fannie and Freddie Mac being released from conservatorship.
He would be the second controversial pick by the president to join the central bank in the past few weeks; the JPM CEO said there are too many “onerous and unnecessary” rules.
The government-sponsored enterprises have continued to expand over the past decade, despite being in conservatorship. New leadership at the FHFA should reverse this trend.
The Federal Housing Finance Agency in recent years has required Fannie Mae and Freddie Mac to contribute to the funds every March, but has yet to make a 2019 request. Housing groups see the delay as a troubling sign.
Mark Calabria has notably criticized the government’s role in housing, but some groups have taken him at his word when he told senators that he supported affordable housing initiatives.
American Banker and National Mortgage News are offering an exclusive discussion of how policymakers may revamp Fannie Mae and Freddie Mac and what that will mean for mortgage lenders of all sizes.
