SFA Letter to Treasury on PSPAs, Releasing GSEs from Conservatorship Prematurely

In a letter to U.S. Treasury Secretary Steven Mnuchin, the Structured Finance Association (SFA) responded to recent reports that steps are being contemplated to put government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac on a “calendar-driven” path out of their current status in conservatorship and asked Treasury to take “responsible steps to avoid the potentially destructive effects of releasing the GSEs prematurely.”

“SFA reiterates our support for the ultimate goal of releasing the GSEs from conservatorship and to increase the role of private capital in our nation’s housing finance system in a responsible manner,” wrote Michael Bright, CEO of the Structured Finance Association, on behalf of the association’s 370 institutional members. “We applaud the work you have done to-date to help transition the system to more stable footing. However, a hastily thrown together exit from conservatorship based on the political calendar risks undoing the positive work that has been accomplished and is currently underway. We call upon Treasury to secure the accomplishments that have been made to-date, and to chart a course that will allow a responsible transition for the GSEs and orderly revisions across the financial landscape. SFA and our members stand willing to aid and engage in this important work.”

SFA’s letter can be read in its entirety here.