Senators Urge FHFA against Steps that Facilitate GSE Release from Conservatorship

Key members of the Senate Banking Committee—Senators Bob Corker (R-TN), Mike Crapo (R-ID), Dean Heller (R-NV), Mark Warner (D-VA), Jon Tester (D-MT), and Heidi Heitkamp (D-ND)—sent a letter to Federal Housing Finance Agency (FHFA) Director Mel Watt on Thursday, July 7, urging him to avoid taking any steps to facilitate the release of Fannie Mae or Freddie Mac from conservatorship without comprehensive housing finance reform. The Senators agreed that changes need to be made to these government-sponsored entities (GSEs), but they argued that such changes should be made through the legislative process.

The letter to Director Watt states: “We are hopeful that housing finance reform will be on the agenda for the next Congress and Administration and look forward to working with you on that effort.  Until that time, we strongly encourage you to focus your efforts on steps that would help, not hurt, housing finance reform legislation.”

Read the letter at: