In the wake of Trump’s social media posts pledging to retain the implicit guarantee for GSE MBS, industry analysts see signs for support for the administration’s plans for GSE reform.
Many stakeholders remain skeptical of the Trump administration’s efforts to release the GSEs from conservatorship, but some analysts now say the process need not meaningfully impact mortgage rates.
President Trump attempted to mollify concerns about the post-conservatorship guarantee of GSE MBS, but questions remain about the regulatory treatment of those securities and the TBA market.
The president’s plan to maintain the implicit guarantee of Fannie Mae and Freddie Mac MBS still leaves unanswered many questions that skeptics say are critical to the GSEs’ safe and sound exit from conservatorship.