Trump Organization announces intent to end federal control over Fannie Mae and Freddie Mac
January 25, 2019
Policy Watch
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U.S. returning asylum seekers to Mexico. The Trump administration will begin returning asylum seekers to Mexico today as part of a new border policy announced last month. Beginning at the San Diego border, some asylum seekers will be turned back to Mexico after receiving their notice to appear in U.S. immigration court. Mexico’s government said that it would allow Central American migrants back, offering them humanitarian visas to live and work while they wait for their hearings. Homeland Security Director Kirstjen Nielsen, in a congressional testimony, said that the new plan would address a necessary change, as current policies allow asylum seekers to “disappear into the United States.” The Trump administration will determine how many migrants are sent back to Mexico each day, though official numbers have yet to be released. [WSJ]
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Big Banks brace for Waters. Big Bank CEOs are anticipating hearings led by newly appointed Financial Services Chairwoman Maxine Waters, according to sources. While details of the hearing are still under wraps, hints were found in a speech from Waters last week, in which she pledged that the committee will pay close attention to whether or not regulators were trying to weaken safeguards put in place after the 2008 financial crisis. Expected to be invited to the hearings are JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Golden Sachs, and Morgan Stanley. The hearings present a change of tone in the level of oversight over the finance industry, which saw several years of deregulation under Republican control. [Politico]
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White House plans to upend housing finance. According to Joseph Otting, acting director of the Federal Housing Finance Agency, the White House plans to end government control of Fannie Mae and Freddie Mac. The administration will not wait for an act of Congress to address the overhaul, as previous attempts had stalled. Otting believes that there will be significant headway in the overhaul within the next six to 18 months. Republicans have long believed that the two companies held an unfair advantage over private companies because of their government guarantee. Democrats, however, are protective of the companies’ affordable housing goals. [Politico]
Economic Indicators and News
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Redfin data shows home sales slipping.According to the latest data released by Redfin, new home sales fell in all four major regions over the past two months. The most drastic declines are in the Northeast region, where new homes sales fell by 16.1% in December alone. According to the company, this is a reoccurring reality for the Northeast, an area that has not experienced new home growth since January 2017. Reports do indicate that a potential increase could arrive in the coming months, with home builder confidence rising in the latest National Association of Home Builders/Wells Fargo Housing Market Index. [HousingWire]
The White House will announce a plan by next month to end government control of Fannie Mae and Freddie Mac in a bid to resolve a long debate over the fate of the two companies that dominate the mortgage market, a top regulator said.
