Jeff Allen

In September, The US Department of the Treasury released a plan to reform the housing finance system. The Treasury Housing Reform Plan consisted of a series of recommended legislative and administrative reforms, including nearly 50 actions to define a limited role for the Federal Government in the housing finance system, enhance taxpayer protections against future bailouts and promote competition in the housing finance system.

While the 2020 election could obviously change Treasury plans with Fannie Mae and Freddie Mac, many observers are already wondering what is next for government-sponsored enterprises.

A number of stakeholders in both single-family and multifamily harbor concerns about housing affordability if the GSEs are privatized. But there is also a line of thinking that pulling them away from government support will benefit different mortgage investor groups.