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ABA: The American Bankers Association
Compliance News

Calabria: Pandemic Highlights Need for GSE Reform

Testifying before the Senate Banking Committee on June 9, Federal Housing Finance Agency Director Mark Calabria emphasized that the pandemic has underscored the need for housing finance reform and to build capital at the GSEs. "Fannie Mae and Freddie Mac lack the capital to withstand a serious housing downturn. This undermines their countercyclical role and jeopardizes their important mission," he said.

FHFA last month re-proposed changes to the existing capital framework for Fannie and Freddie, and Calabria noted that additional legislative changes will likely be needed to end the conservatorships and to ensure that FHFA has adequate tools and authorities to regulate the enterprises going forward.