The debate over how to end the conservatorships of Fannie Mae and Freddie Mac hinges on whether rating services would downgrade the GSEs if they exit without an explicit government guarantee.

TRACE trade data on non-agency CMOs isn’t released until 18 months after the transaction, leaving customers at the mercy of dealers when it comes to pricing information.

Bill Pulte, Trump’s choice to run the FHFA, is a scion of a homebuilding industry giant, but his background is mostly in private equity and philanthropy.

Republicans, who have long opposed the bi-merge credit scoring model, now control Congress. That, combined with Trump’s “regulatory freeze,” could spell the end of this part of credit report reform.

Nonbanks handled 60.1% of the $6.56 trillion of GSE single-family servicing as of the end of 2024.

Scott Bessent, nominee to head the Treasury, didn’t mention the GSEs in his confirmation hearing last week.

At its current pace, by the end of March Mr. Cooper Group will have overtaken Chase Home Finance as the largest GSE server. (Includes two data tables.)

The GSEs’ credit score playbook now lists the implementation dates of the bi-merge and the shift away from Classic FICO as TBD.

Given the financial and political hurdles that stand in the way of releasing Fannie Mae and Freddie Mac from conservatorship, it may be only a second- or third-tier issue for the Trump administration.

Hugh Frater and Don Layton speculate on the likelihood a second Trump administration can get Fannie Mae and Freddie Mac out of conservatorship.