Corker supports Administration plan to reform Fannie Mae and Freddie Mac

This story appeared in Bank Digest.   

Senator Bob Corker (R-Tenn) has issued a statement on the Trump Administration's proposal to reform government-sponsored enterprises Fannie Mae and Freddie Mac that was included in a plan to reform and reorganize the federal government. 

With regard to the government-sponsored enterprises, the plan proposed "ending the conservatorship of Fannie Mae and Freddie Mac, reducing their role in the housing market, and providing an explicit, limited Federal backstop that is on-budget and apart from the Federal support for low- and moderate-income homebuyers." The plan also proposed "transitioning Fannie Mae and Freddie Mac to fully private entities." 

Corker said, "It is long past time to end the failed model of private gains and public losses, and I agree with the administration that creating competition is a critical step as we work to shrink Fannie and Freddie and put an end to 'too big to fail' mortgage companies." He added that the framework put forth by Office of Management and Budget Director Mick Mulvaney "is the right one and closely resembles the approach we laid out in recent legislative drafts developed on a bipartisan basis in the Senate."