In The News

Admin Quiet on GSE Future in 2011 Budget

In spite of widely held expectations that the Administration’s FY2011 budget would lay out some significant outline of its plans for housing GSEs Fannie Mae and Freddie Mac in the future, the actual budget documents contain only one short paragraph about this topic.  In the “Special Topics” subsection of its “Analytical Perspectives” addendum to the budget, the Administration devotes a number of pages to the companies’ history and current status under the conservatorship imposed on them in September, 2008.  But as to their future, the report offers only the following on page 352:

”Future of the GSEs

“The Administration continues to monitor the situationof the GSEs closely and will continue to provide updates on considerations for longer term reform of Fannie Maeand Freddie Mac as appropriate.”

Reuters reported earlier today that HUD Secretary Shaun S. Donovan told reporters on a conference call about the budget that more details would be forthcoming soon.