Sumary of Candidate to head FHFA favors turning Fannie, Freddie into utilities:
- WASHINGTON — Rumors circulating this week about a potential nominee to head the Federal Housing Finance Agency could offer key insight into how the Biden administration envisions the future of the mortgage giants Fannie Mae and Freddie Mac.
- Calhoun — who has been president of CRL since 2006 — would likely steer both the FHFA and the two mortgage giants in a much different direction than former FHFA Director Mark Calabria, a Trump appointee whom President Biden ousted in June after the Supreme Court ruled that the president can fire the head of the agency at will.
- Since then, fundamental reforms have been made to them, and these changes have addressed systemic risks,” Calhoun said in testimony in 2019 to the Senate Banking Committee.
- “Going forward that work needs to be continued and expanded through regulation like that of the utility industry, to ensure that the housing finance system fully carries out its public mission but does not expand beyond that role.
- ” If he is nominated and confirmed to lead the FHFA, Michael Calhoun would likely continue a focus on affordable housing and fair-lending issues that acting Director Sandra Thompson has prioritized since taking the helm of the agency.
- Contributed, Bloomberg News He also distanced himself from more extreme reforms to substitute a completely new housing finance regime for the current model.
- “Proposals to replace the housing finance system with a dramatically new model would unnecessarily undercut the system’s public mission and place our overall housing market in grave danger of harmful and costly disruption,” he said.
- “It appears possible that Calhoun could support GSE privatization if it created utilities that could play a far more meaningful role in supporting affordable housing,” Bose George, an analyst with Keefe, Bruyette &