- Nov 10, 2014
What’s Next for the GSEs?
By Keat Foong, Finance Editor
For a moment in the spring when the Johnson-Crapo bill moved, GSE reform may have seemed, finally, possible. Many in the industry now agree, however, that the likelihood of any action has come to a halt.
“There is a very small chance of getting GSE reform in the next year,” observed Willy Walker, chairman, president & CEO of Walker & Dunlop. “My take is that regardless of whether the Senate is won by Republicans or Democrats, there will be limited interest either in drafting new GSE reform legislation or getting Johnson-Crapo legislation back up and going.”
The industry-supported, bipartisan Johnson-Crapo bill (S. 1217) in the Senate, which builds on the GSE reform bill introduced in 2013 by Sens. Bob Corker (R-Tenn.) and Mark Warner (D-Va.), was passed by the Banking Committee in May. The bill would wind down Fannie Mae and Freddie Mac, create a government backstop for guarantee of mortgage securities, and allow the private sector to take over much of the GSEs’ current functions.