GSE Reform

GSE Reform


"The world is on fire" 

"...[T]he Federal Reserve is no longer in control of its own destiny. Ask Fed officials would they have liked to move the Dow by over 300 points after a statement is issued in which they do nohting at all.  The answer is no and yet they did, becuase they are not able to communicate and maintain a clear policy message because they've become hostage to the rest of the world.

It's not thier fault.  They've been pushed into a role that they don't really want.  But think of it htis way - a month earlier, they had told us that they expect four [rate] hikes - now, we get one or two.  A month earlier, they had told us there is a certain balance of risk in the economy.  Now, they're telling us they can't even comment on the balance of risk.  I think the Fed is as confused as anybody else because we're living on the midst of massive changes in liquidity, in volatility, and the gobal economy."


Mohammed El-Erian

Allianz Chief Economic Advisor

January 28, 2016









Attached please find our latest edition of the Roadmap to GSE Reform. 


Within the attachment are four documents that describe in detail:


·       A side-by-side comparison of the PATH Act, S. 1217, and Ranking Democrat Maxine Waters’ Discussion Draft.   

·       The PATH Act

·       Discussion draft (S. 1217) proposed by Senate Banking Committee Chairman Tim Johnson and Ranking Republican Mike Crapo

·       Discussion draft put forth by House Financial Services Committee Ranking Democrat Maxine Waters (D-CA) from Ranking Member Waters


The first document – i.e., the side-by-side comparison -- compares the areas in the proposed legislation that overlap.  While useful for comparing areas of overlap, this document is lengthy.  For that reason, there are also three documents that describe each of the three legislative proposals individually. 


Best regards,


Canfield Press



“The problem with Fannie and Freddie [was] not their function,” said Graham Fisher Managing Director Josh Rosner. “It’s the fact that they were undercapitalized, their credit box was not commensurate for the risk they were taking and they had large [mortgage] portfolios that made them into hedge funds. …What we have [with in reform proposals] is Washington trying to dismantle something and replace it with something that’s essentially the same thing.”


Attached please find an updated Roadmap to GSE Reform.  This update reviews all of the pending GSE reform bills that have been introduced in the U.S. Congress to date.


Best regards,

Anne Canfield


“You simply cannot keep short-term interest rates negative for this long in the face of even modestly positive economic growth without generating financial imbalances and inflationary excesses down the road.”

David Rosenberg October 9, 2013 


This is the October 13, 2013 updates to the “Roadmap to Financial and Housing Market Stabilization Plans” document.  These updates include the following:

  • SunTrust agreed with HUD and the Justice Department to $500 million in consumer relief and a $468 million cash payment in connection with mortgage practices.  SunTrust also agreed in principle with the Federal Reserve to pay $160 million in connection with mortgage servicing practices, similar to penalties last year against five other servicers.  Of this $160 million, SunTrust may spend the funds by December 31, 2015 on borrower assistance or remediation, or on a program to provide funding for nonprofit housing counseling organizations for counseling to borrowers who are facing default or foreclosure. 
  • Treasury announced that it priced auctions of all of its preferred shares in the following institutions:
    • Bank of George (Las Vegas, NV) for $1,003,949; Treasury paid $2,672,000;
    • Blue Valley Ban Corp. (Overland Park, KS) for $21,263,017; Treasury paid $21,750,000;
    • Centrue Financial Corporation (Ottawa, IL) for $1,950,000; Treasury apparently paid $7,402,000;
    • Eastern Virginia Bankshares, Inc. (Tappahannock, VA) for $26,498,640; Treasury paid $24,000,000;
    • Oregon Bancorp, Inc. (Salem, OR) for $3,379,447; Treasury paid $3,216,000;
    • Spirit BankCorp, Inc. (Bristow, OK) for $9,638,325; Treasury paid $30,000,000; and
    • Valley Community Bank (Pleasanton, CA) for $ 2,367,615; Treasury paid $5,500,000.

Treasury had earlier announced that its shares in Liberty Shares, Inc. (Hinesville, GA) would also be auctioned, but were not.  Prices paid are here