Fannie-Freddie Regulator Urges Utility Mortgage Guarantors
- FHFA Director Mel Watt says MBS guarantees should be explicit
- Watt sends letter to senators in response to request for views
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Fannie Mae and Freddie Mac’s regulator is throwing its voice into the debate about what to do with the two companies at the center of the U.S. mortgage system.
In a proposal obtained by Bloomberg News, Federal Housing Finance Agency Director Mel Watt wrote that he and agency staff believe the mortgage market should be supported by shareholder-owned utilities with regulated rates of return and an explicit government guarantee of mortgage bonds.