September 11, 2019
In This Issue:
- U.S. Treasury Department Releases Plan to Restructure Fannie Mae and Freddie Mac
- Fidelity and Stewart Merger Terminated After FTC Complaint
- TLTA Co-Signs U.S. Chamber Letter Requesting Delayed Implementation of California Privacy Law
U.S. Treasury Department Releases Plan to Restructure Fannie Mae and Freddie Mac
James E. Hyland, TLTA Federal Legislative Counsel | Sept. 9, 2019
Last Thursday, after the close of the markets, the U.S. Treasury Department released a plan on restructuring these government-sponsored enterprises (GSEs): Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).
In 2008, the government put the two companies into conservatorship and subsequently received approximately $190 billion from the Treasury Department. The two companies have since returned to profitability and repaid their debt to the Treasury. For a number of years now, policymakers in Washington have discussed the next moves for the two companies. In March 2019, President Trump issued a Presidential Memorandum directing the Secretary of the Treasury to develop a plan for administrative and legislative reforms to address this last unfinished business of the financial crisis.
Fannie and Freddie, along with the Federal Housing Administration (FHA), guarantee over half of the $10 trillion U.S. home loan market. Any changes to Fannie and Freddie will have an impact on the mortgage market.
The central component of the Treasury Department’s plan is making the companies private again, but with sufficient private capital to prevent the companies from seeking another financial bailout. The Treasury Department also recommends that Fannie and Freddie pay a fee for any backing it has from the U.S. government. Some have suggested this may raise the cost of mortgages, but others suggest it is a necessary component of the plan.
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Read ALTA's Statement »
Fidelity and Stewart Merger Terminated After FTC Complaint
TLTA | Sept. 10, 2019
The proposed merger between Fidelity National Financial and Stewart Information Services was terminated after the U.S. Federal Trade Commission sought to block the deal.
Statement by Fidelity »
Statement by Stewart »
TLTA Co-Signs U.S Chamber Letter Requesting Delayed Implementation of California Privacy Law
TLTA | Sept. 6, 2019
The California Privacy Act of 2018 (CCPA) is scheduled to take effect in 2020, but California's Attorney General—who is responsible for enforcing the law—has not completed rulemaking and there are amendments to the CCPA pending before the California Legislature.
In light of the uncertainty surrounding implementation of a law that could affect at least 500,000 companies nationwide, TLTA has co-signed a letter urging California lawmakers to extend CCPA's effective date to Jan. 1, 2022.
Read the Letter »
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