This is good news. Let’s hope Doctor Calabria gets a prominent seat at the White House economic policy table.
In a blog post this week, Calabria offered a way for Treasury to rein in mortgage giants Fannie Mae and Freddie Mac without help from Congress. He urged Steven Mnuchin, Trump’s choice for Treasury secretary, to “strongly consider” the idea.
Fannie and Freddie have been wards of the government since the housing collapse and rely on taxpayers for financial support. Congressional efforts to rebuild the companies have failed, bogged down by competing interests, complexity and a lack of urgency among lawmakers.
House Financial Services Chairman Jeb Hensarling has said he’ll make his mortgage-reform bill a priority this year.