The Structured Finance Association recognizes that the conservatorships of Fannie Mae and Freddie Mac have been a subject of long-standing debate, and we commend the Trump administration for engaging with this critical issue. As discussions around a potential IPO move forward, it’s essential that the multi-trillion dollar mortgage-backed securities market is prioritized and meaningfully represented. The implications for market stability and consumers’ mortgage interest rates are profound. Given the unprecedented length of the conservatorship, we understand the desire for a swift resolution, but we urge the administration and Congress to proceed with caution. Any significant changes to the GSEs must be evaluated through the lens of their effects on the secondary mortgage market, mortgage interest rates, market liquidity, and long-term confidence in the U.S. housing finance system.
