Clinton + Warren = Cat-Risk Backstop + Affordable-Housing Standards
Treasury Counselor Antonio Weiss yesterday issued a detailed brief on GSE reform that, given the last gasps of the Obama Administration, is clearly a puff of policy aimed at influencing the Clinton Administration. The brief picks up much that the Obama Treasury has long said – support for a Corker-Warner style catastrophic backstop behind private guarantors – but now goes on at great length to talk up affordable housing. FHFA Director Watt earlier this week also emphasized affordable housing as his priority 2017 to-do. Translation: if Clinton takes the White House and especially if Democrats control the Senate, affordable-housing goals and statutory requirements are the price of GSE reform.