Trade groups representing appraisers said the proposed automated valuations are really just rebranded desktop appraisals, not too dissimilar to the ones that helped crash the housing market in 2008.
Treasury, which administers the capital magnet fund, uses the money to provide competitive grants to community development financial institutions and nonprofit housing organizations.
Sen. Pat Toomey, R-PA, argued that the Democrats’ $1.9 trillion COVID relief bill and the Federal Reserve’s bond purchases are no longer necessary, and that more targeted, less costly measures are in order.
Of the lenders analyzed by hedge advisory firm MCT, 25% will be directly impacted by the $1.5 billion cap on the amount of loans Freddie and Fannie can purchase from each seller over any four-quarter period.
The co-inventor of the MBS says Fannie and Freddie should be regulated as utilities to improve their affordable housing and racial equity activities. He recommends Treasury use its equity to fund joint venture.
The industry veteran joins a growing list of highly regarded members of GSE leadership who have recently decamped for greener pastures in private enterprise.