Industry Coalition Promotes GSE Reform Principles
March 1, 2019
The Real Estate Roundtable and 27 other industry organizations today submitted principles for reforming the Government-Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac, which underpin the multi-trillion-dollar financial market for single-family and multifamily mortgages.
- A liquid national market with broad and fairly-priced access to affordable credit and improved infrastructure for the single-family secondary market;
- Support for strong and sustained liquidity in the multifamily rental market;
- Equal secondary market access and pricing for all lenders, regardless of size or volume; and
The sustainable transfer of appropriate credit risk to the private sector.
The letter also advocates that principles governing any potential administrative reforms to the GSEs should be guided by the potential impact on borrowers, taxpayers, and market structure dynamics. Any reform that would meaningfully alter the GSEs' market presence-single-family, multifamily, or both-should also seek to maintain and enhance the stability and liquidity of the housing finance system.