11.29.20
The Washington Post Editorial Board drafted a piece on Sunday, November 29, urging federal regulators to hold off on rushing the privatization of the housing GSEs. Within the article, the editorial board comments that rushing the process of privatizing the GSEs is dangerous because it could result in a massive shock to the mortgage markets that have already adapted to this “new normal.” In addition to drastically changing the mortgage market, the editorial board warns that privatizing Fannie and Freddie may not create investor interest in the GSEs because of the numerous aspects Congress would still have to address. Rather than rush the process, the editorial board argues that a gradual improvement is best, making it easier to pass a legislative fix. Last Monday, November 23, SFA submitted a letter to the Department of the Treasury urging not to release the GSEs from conservatorship prematurely.