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In response to that growing criticism plus how much has changed in markets, legislation, and regulation during the 90-plus years of the FHLBanks’ existence, its regulator – the Federal Housing Finance Agency (FHFA) – announced in 2022 that it would undertake a review of the entire System.
On the other hand, they are required to undertake a public policy mission that does not generate such a return, leading to Congress also awarding them subsidies to ideally even it all out. Although that justification appears nowhere in the legislation creating the GSEs, it is quite broadly accepted by a wide range of policymakers.
4] The relevant Trump II policyobjectives I have identified nine policyobjectives that are both likely to be important to officials in the Trump II administration and relevant for shaping GSE mortgage policies and programs. Reform or eliminate specific targeted credit access programs (e.g.,
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