The Senate has confirmed Bill Pulte as the director of the Federal Housing Finance Agency by a vote of 56-43. This appointment positions the businessman at the forefront of a contentious debate over the future of Fannie Mae and Freddie Mac.
The Trump administration has long been expected to push for the release of Fannie and Freddie from government control, a move that has been a priority for many Republican allies. However, Pulte has signaled a more cautious approach. "Fannie and Freddie shouldn’t be in conservatorship forever," he told CNN. "But it’s critical to ensure any discussion about exiting conservatorship needs not only to ensure safety and soundness but how it would affect mortgage rates."
Pulte emphasized that privatizing the two mortgage giants is not the Trump administration's immediate priority. Instead, he stressed the need for a "significant study" on the potential impact on mortgage rates before any such move. This caution is well-founded, as experts warn that privatization efforts could unsettle investors unless there are clear assurances of government support in times of crisis, potentially leading to higher mortgage rates.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
