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WASHINGTON (November 19, 2020) – Yesterday the Federal Housing Finance Agency finalized its rule governing the required capital structures for Fannie Mae and Freddie Mac. While more analysis of the final rule is needed, NAR remains concerned the proposed rule could significantly raise costs for consumers, hamper the GSEs' ability to support underserved markets and undermine reforms made over the last decade. NAR believes excess capital is no replacement for transparency and effective oversight.
"Fannie Mae and Freddie Mac have provided critical housing security throughout the COVID-19 pandemic, preserving American jobs and safeguarding an industry that represents nearly 20% of the U.S. economy," said NAR President Charlie Oppler, a Realtor® from Franklin Lakes, N.J., and the CEO of Prominent Properties Sotheby's International Realty. "With the GSEs also now supporting three-quarters of all U.S. home purchases, NAR urges the FHFA to ensure Fannie and Freddie are providing much-needed market stability during this prolonged period of uncertainty and disruption.
"NAR thanks the FHFA for its work to reduce procyclical risk and we look forward to analyzing the proposal in more detail over the coming days, but we caution the Treasury and FHFA against taking drastic action with two institutions that are so vital to housing and the economy."
The National Association of Realtors® is America's largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.
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