Mark Calabria wants to pull Fannie Mae and Freddie Mac from conservatorship by the time President Trump leaves office next month.
Not so fast, says Rep. Maxine Waters.
The chairwoman of the House Financial Services Committee sent Calabria a letter last week urging him to “fully engage with Congress, halt all efforts to raise the capital requirements for Fannie Mae and Freddie Mac and halt all efforts to release them from conservatorship.”
“I believe that it is entirely inappropriate for you and your agency to be focusing on releasing the Enterprises from conservatorship during the pandemic with the assistance of a lame duck Treasury Secretary,” Rep. Waters wrote. “At the very least, the Congress and the American public deserve transparency from you. On behalf of current homeowners, renters, potential homebuyers, and more than 19 million prospective millennial homeowners, I urge you to fully engage with Congress by testifying before our Committee and to immediately halt your efforts to raise the Enterprises’ capital requirements and to release them from conservatorship. You should instead focus on ensuring that renters and homeowners are receiving the help they need during this pandemic.”
The Federal Housing Finance Agency placed Fannie Mae and Freddie Mac under conservatorship – or government control – in September 2008 amid the housing crisis. Calabria has been taking additional steps in recent months to prepare the companies to emerge from federal control.
The Wall Street Journal reported last month that Calabria has “made it a priority to return Fannie and Freddie to private hands,” though noted that it is a long shot that it could be achieved by Jan. 20.