September 12, 2018
Bill to Repeal GSEs Introduced; Appraisal Institute Reviewing Proposal
Reps. Jeb Hensarling, R-Texas, and John Delaney, D-Md., released on Sept. 6 a discussion draft bill to reform the government sponsored-enterprises and the housing finance system currently backed by Fannie Mae and Freddie Mac. The bill would repeal the GSEs’ charters and adopt a system allowing qualified mortgages to be securitized through Ginnie Mae.
The bill would establish a new non-government, not-for-profit mortgage security exchange to develop common “best practices” standards for the private securitizing, pooling and servicing of mortgages, and operate a publicly accessible securitization outlet to match loan originators with investors. The bill would require the transfer to the exchange of historical loan-level data and the underwriting technologies used by the GSEs, and grant public access to this information. The exchange would set and maintain the basic recordation, disclosure and transparency “best practices” standards for the mortgage industry.
The discussion draft is currently under review by the Appraisal Institute Government Relations Committee.