Housing reform becomes urgent as GSEs’ capital buffer nears zero


No matter what form government-sponsored enterprise reform takes, Federal Housing Finance Agency officials are stressing that it should account for the fact that the GSEs’ capital buffer will soon hit zero.

“I think the biggest and most significant risk is the continually declining capital buffer,” Bob Ryan, the FHFA’s acting deputy director of the division of conservatorship, told attendees at the Mortgage Bankers Association’s National Secondary Market Conference in New York Monday.

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