Ed DeMarco Sees No Good in Fannie Mae ‘Recap and Release’ (1)

Recapitalizing Fannie Mae and Freddie Mac and releasing them from conservatorship would do nothing to fix the mortgage giants’ charters or alter their implied government guarantee, said Edward DeMarco, president of the Housing Policy Council.

“I’m not sure what is good about recap and release,” DeMarco, a former acting director of the Federal Housing Finance Agency, said in a phone interview. Some analysts -- and investors -- see recap and release as the Trump administration’s most likely move in overhauling the housing finance system. DeMarco noted the Trump administration hasn’t endorsed recap and release, and declined to comment further.

He ...