- Fannie Mae and Freddie Mac continue to provide financing for more than half of the residential mortgages in the United States. Both organizations were taken into government conservatorship in order to shore up a weak and speculative housing market during the 2008 Global Financial Crisis.
- While Fannie and Freddie were initially intended to be “wards of the state” for the worst period of the financial crisis, the conservatorship is now 12 years old. Ending the conservatorship involves questions of unwinding existing housing finance arrangements, including rules and regulations, mortgage loan guarantees, and dividend payments.
- President Biden may select a replacement for Federal Housing Finance Agency (FHFA) Director Mark Calabria, who was appointed by former President Trump. However, the ability to name a replacement is contingent on a forthcoming Supreme Court decision. Where Calabria has an interest in ending the government conservatorship of Fannie and Freddie, the Biden administration would like reform measures to prioritize the expansion of affordable housing.