On February 26, several U.S. Senators sent a letter to HUD Secretary, Scott Turner, raising concerns about the Secretary’s role in the potential reprivatization of government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. The Senators expressed apprehension that reprivatization could lead to increased housing costs, reduced access to mortgage credit, and potentially undo reforms made since the enterprises were placed into conservatorship in 2008. They questioned the Secretary’s commitment to ensuring that any changes will not negatively impact mortgage costs or access to credit and seek clarification on the Secretary’s responsibilities and the partners involved in the reprivatization process.
The letter also addressed concerns about the influence of hedge funds and investors who could profit from the end of the conservatorships, and it emphasized the need for transparency with any changes. By March 12, the Senators requested a response to questions including:
- “Will HUD, and you as HUD Secretary, be the quarterback of any efforts to make changes to Fannie Mae and Freddie Mac? What specific responsibilities will you have in this role?
- “If you help lead the process to end the conservatorships of Fannie Mae and Freddie Mac, do you commit to ensuring that any changes do not raise mortgage costs or make it more difficult to access mortgage credit for American homebuyers?
- “Will you commit to ensuring that any changes to Fannie Mae and Freddie Mac will not result in higher rents for American families?
- “You have said that ‘[t]here are partners that will be at the table’ on efforts to reprivatize Fannie Mae and Freddie Mac, and that ‘[w]hen you’re a quarterback, you’ve got to work with the entire huddle.’ What other partners will be at the table when discussing changes to Fannie Mae and Freddie Mac?
- “What authority does HUD have with respect to the [GSEs] and their ongoing conservatorships?”
