Copyright: Andrea Izzotti

In recent days, Treasury Secretary Mnuchin has appeared before both the Senate Banking and House Financial Services Committees to provide the Financial Stability Oversight Council's annual report to Congress.

Of note to apartment firms, Mnuchin said in his testimony that reform of Fannie Mae and Freddie Mac is a top priority of the Trump administration. He declined to go into details but noted that the current conservatorship arrangement for Fannie and Freddie is “neither a sustainable nor lasting solution,” and called on Congress to arrive at a bipartisan agreement that could provide necessary support for the housing market without putting taxpayers at undue risk.

During the Senate hearing, Chairman Mike Crapo (R-ID) also noted that GSE reform was his highest priority and that the Committee is developing a legislative housing finance reform package that could be made public soon.

More on GSE reform can be found here while more on Mnuchin’s comments can be found here.