Fannie Mae and Freddie Mac may stop offering certain mortgages as they prepare to privatize, but borrowers won’t be left behind, the companies’ chief regulator said Monday.
When the Trump administration released its plans for housing finance reform in September, one key element was to identify overlaps between the loan products offered by Fannie and Freddie and those insured by the Federal Housing Administration.
‘Fannie and Freddie must not repeat the mistakes of the crisis by stretching to serve borrowers who are better served by FHA.’ — Mark Calabria, FHFA director
The Federal Housing Finance Agency put that recommendation into action Monday when it released its new strategic plan and “scorecard” for Fannie and Freddie. Through the scorecard, the FHFA outlined the priorities for Fannie and Freddie for the next year. For the first time, the agency is requiring the two enterprises to come up with plans for how they will exit conservatorship.
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