Mortgage Bankers Association President and CEO Bob Broeksmit touched on a number of headline issues impacting the mortgage industry during a speech at the MBA’s Secondary and Capital Markets Conference, which is taking place this week in New York City.
Broeksmit praised the decision in March by Bill Pulte, director of the Federal Housing Finance Agency (FHFA), to rescind an advisory bulletin that called on Fannie Mae and Freddie Mac to conduct unfair or deceptive acts or practices (UDAP) oversight. He also discussed the recent rollback of mortgage industry guidance by the Consumer Financial Protection Bureau.
Toward the end of his prepared remarks, Broeksmit addressed what he termed the “elephant in the room” — the proposed release of Fannie and Freddie from federal conservatorship.
Pulte, the FHFA director who oversees Fannie and Freddie, has made it clear in multiple interviews that he will defer to President Donald Trump regarding any decision on the government-sponsored enterprises’ exit from conservatorship.
Broeksmit said he has had private meetings with Trump administration officials, who made it clear that while a decision on Fannie’s and Freddie’s fates is “on their radar, it’s not a priority.”
“We’ve also heard from Treasury Secretary (Scott) Bessent and Director Pulte that they won’t allow a release that results in higher mortgage rates and costs for borrowers. This is music to our ears,” Broeksmit said, according to the prepared remarks provided by the MBA.
He added: “In the months ahead, we’ll continue to work with the White House and Congress to ensure that release is done thoughtfully, without disrupting the capital markets or the housing market. It’s time to get this done — and it’s time to do it right.”
Besides government-related lending, Broeksmit also discussed what the MBA sees as an “opening to revitalize the private market.”
“We’re in talks with the administration about making it easier for banks to keep loans on their balance sheets and securitize mortgages that aren’t eligible for federal programs,” he said. “We’re also working closely with prudential regulators to ease capital standards.”
Broeksmit concluded: “Our ultimate goal is simple: We need to restore a flourishing private market to complement the government-supported market — because that’s what’s best for borrowers.”
