FHFA’s new annual housing report reinforces aspects of the Administration plan that redefine the GSEs’ affordable-housing mission.  For all the opprobrium Democrats heaped on the plan, Treasury and FHFA want Fannie and Freddie to focus on un- and under-served markets, redefining the GSEs into securitizers that do the business between FHA’s insured book and loans that the Administration thinks lenders will book for their portfolios or a newly-resurgent private-label market.  A follow-up report will deal with the strategic implications of this FHFA report.

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