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66 Senate Committee on Banking, Housing, and Urban Affairs, was leaned on, as it focused on a multi-guarantor model, giving more competition to the GSEs and providing a level playing field for all lenders. What the plan is missing, Stevens said, is actual data. He said there are no specific numbers and plans for how to get out of conservatorship, although it does provide several options. One of the options outlined involves putting the GSEs in receivership, which would liquidate the shareholders. "I applaud the administration for putting this together…it is more fulsome than anything that was done by the previous administration, but it still essentially lays out the contours for what has to happen, and with the aggressive lean into legislation, which I frankly think has no possible prospect of happening, at least before the next presidential election," Stevens said. "I still maintain my expectation that people will use this paper to debate and discuss, but beyond some administrative actions Mark Calabria (FHFA Director) might do, I don't know what else might happen that is significant." Timothy Mayopoulos, President of Blend, said the Treasury Department's report is an "important step forward" and reflects a shift in the thinking in Washington over the last decade. "Ten years ago, many in Washington wanted to burn down Fannie Mae and Freddie Mac and salt the earth," Mayopoulos said. "Over time, there's been a recognition that Fannie and Freddie play essential roles in our housing finance system, and the shift in mindset has been that we should preserve what works and reform what needs to be changed. I believe that this plan does that." Mayopoulos added that this report builds on ideas that have gained traction in Washington, including preserving the 30-year fixed rate mortgage, attracting private capital to reduce taxpayer exposure, compensating taxpayers for government guarantee (if one exists), preserving a level playing field for lenders of all sizes, and ensuring "rigorous" regulation of Fannie Mae and Freddie Mac moving forward. e release from the Treasury Department last month stated President Donald Trump issued a Presidential Memorandum on March 27, 2019, directing the Secretary of the Treasury to develop a plan to address the "last unfinished business of the financial crisis." "As a direct result of the Trump administration's pro-growth policies, unemployment is at a 50-year low and American families are earning higher incomes and enjoying more opportunities than seemed possible just a few years ago," said Secretary of Housing and Urban Development Ben Carson in a release. "ese changes to our housing finance system will help more American families achieve their dream of owning a home." Michael Fontaine, COO and CFO of Plaza Home Mortgage, echoed Stevens' sentiments. He said the plan will keep the GSEs in place in some form so as to not disrupt the housing market. Fontaine added that there is a lot of "high-level" ideas in the plan, but no concrete details on how to execute them. One area Fontaine suggested needed to be fleshed out is the possibility of eliminating the QM patch for GSEs for loans over 43 DTI. If there is no alternative proposed, Fontaine said, this change could limit access to credit for many consumers, as the GSE handles many loans over 43 DTI. "ere's no details behind that," Fontaine said. NEXT STEPS Stevens noted that Calabria is an independent regulator and not part of the Trump administration, and will make his own decisions about how to best move forward. "Nothing's easy in government. is is a very complicated project" Stevens said. Fontaine noted that this is still a divisive "I just think, substantively, to execute against this plan, is going to require more of a herculean effort, and it would require the full weight of the White House to even give it a shot." —David Stevens, former Federal Housing Commissioner and former President and CEO of the Mortgage Bankers Association

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