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Fannie Mae

Fannie Mae-Buster Brown

US R&B Chart #1 Hit in 1960, this song belongs to Buster Brown.

How next FHFA chief can reform Fannie, Freddie without Congress ...

That highlights the importance of whomever the Trump administration selects for the job. It could be someone who differs from Watt — an Obama appointee — in style and policy, who could opt to go as far as placing the mortgage giants into receivership.

“I don’t think we’re going to have legislative GSE reform anytime, but the day-to-day decisions they make, whether to approve a pilot or fund the Housing Trust Fund, these are significant decisions that will impact the trajectory of mortgage finance,” said Isaac Boltansky, the director of policy research at Compass Point.

During his tenure, Watt has appeared cautious about changing Fannie and Freddie's role in the absence of congressional reforms.

"I am well aware, and regularly express my belief, that conservatorship should never be viewed as permanent or as a desirable end state and that housing finance reform is necessary," Watt said in a 2014 policy speech early in his FHFA tenure. "However, Congress and the administration have the important job of deciding on housing finance reform legislation, not FHFA. Instead, our task is to continue to fulfill our statutory mandates, to execute our strategic plan and to manage the present status of Fannie Mae and Freddie Mac.

Romantic relationship triggers second rebuke for Fannie Mae CEO

The public version of the inspector general's report, which was released last month, was redacted and didn’t identify Mayopoulos, Russell or TransUnion by name. POLITICO has independently confirmed the report’s contents.

The report raises new questions about the management and oversight of Fannie Mae, the country’s biggest source of mortgage funding. Fannie Mae and the smaller Freddie Mac, which are backed by U.S. taxpayers, have been under government conservatorship since the housing market collapse and, during that time, have increased their power over the market. Their regulator, the Federal Housing Finance Agency, has been criticized for giving the two companies too much freedom to grow, amid warnings that taxpayers could be at risk.

On July 23, Fannie Mae announced that Mayopoulos would step down by the end of the year. That was three days before the watchdog released the report criticizing him, Fannie Mae, and its regulator. The same day, FHFA Director Mel Watt dropped the credit-scoring project, which had the potential to expand homeownership to millions of Americans, including minorities, the self-employed and lower-income borrowers.

Fannie Mae?

What is the difference between Fannie Mae and Freddie Mac in terms of their purposes and in terms of the assets they hold? Are these two essentially identical?


The main difference is how they came about. Freddie Mac is the result of the S&L bailout during the 80s. Fannie Mae's inception dates back to the time of the New Deal. They both, I believe, operate in a similar fashion.