Freddie CEO: Reform Depends On Specificity

Written by John Clapp
on October 26, 2010 No Comments
Categories : Mortgage Servicing

6984_10-25_photo Freddie CEO: Reform Depends On Specificity The priorities of the government-sponsored enterprises (GSEs) this time next year will depend largely on how specific the Obama administration is in delivering its proposals for housing finance reform in January, Freddie Mac CEO Charles E. Haldeman Jr. said Monday.

Haldeman, speaking during the Mortgage Bankers Association's Annual Convention and Expo in Atlanta yesterday, said the level of specificity will dictate how smoothly Freddie Mac and Fannie Mae can implement changes. The more detailed the road map, the better, Haldeman said.

‘We will get something – I'm certain of that – but the issue is, how much specificity do we get in January,’ he said.

Furthermore, the housing market is unlikely to improve enough by next October to warrant an exit by the federal government.

‘I don't think the system will be ready for any material disengagement of the government at that time,’ Haldeman said.

Haldeman's comments came as part of a panel session that included leadership from Ginnie Mae, Fannie Mae and the Federal Home Loan Bank of Atlanta. Panelists agreed that the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act on the mortgage markets will be felt most greatly in the relationships between originators and borrowers.

The costs to consumers will rise, speakers said, but because the legislative changes will result in greater consumer protections, the increased costs will be considered ‘tolerable and acceptable,’ Haldeman said.

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