Thursday, November 20, 2014

The tide is turning, Politically and the Press.

The tide is turning. Take a look at the Google news page for Fannie mae.

You'll Notice a lot of end the conservatorship talk, You'll also notice a lot of pushing by democrats for affordable housing and mortgage relief.

There is also two new leaders of the senate banking committee! Neither voted for the Johnson Crapo bill and both want to scrap it and start over, But for opposing reasons.
There will be no path forward in the next Senate.

Leaving only Watt and Lew to remove the conservatorship before the Republicans gain the presidency and Appoint a New FHFA head and a New TREASURY secretary.

It has gotten very serious for the democrats. If a Republican President were elected in 23 months, The democrats could see the affordable housing goals they strongly want to be tossed out with the closing of Fannie and Freddie by the new Republicans. In this scenario, The Republicans could do as they choose with Housing as they by law would control both FHFA and Treasury. Congress would not matter, as they do not now. HERA gives all the power needed to FHFA, under Watt the conservatorship will end!
As a contrast, under Republican FHFA affordable housing will end along with the middle class.

This can be a huge win for democrats and help them get the Presidency in 23 months. They need a strong housing finance system to win election. They need F&F to support affordability.

By the looks of it the Political will is pushing FHFA reform talk to the top of the housing agenda and with that release from conservatorship before Republicans can get control of Housing. 23 months and counting down.

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