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HUD Proposes Organizational Changes

David Weber, PHADA Policy Analyst

On September 5, 2019, both the Department of the Treasury (Treasury) and the Department of Housing and Urban Development (HUD) issued reports titled “Housing Finance Reform Plan.” The reports were issued pursuant to the Presidential Memorandum on Housing Finance Reform issued March 27, 2019.

The primary purpose of recommendations requested by the President from the Treasury are to reform the housing finance system, clarify the roles and standards of operation for the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) – collectively known as the Government-sponsored enterprises (GSEs) - in order to (i) end the conservatorship of the GSEs; (ii) Facilitate competition in the housing finance market; (iii) Establish regulation of the GSEs to minimize the risks they pose to the financial stability of the United States; and (iv) provide that the Federal Government is properly compensated for any support it provides to the GSEs or the secondary housing finance market.

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