The Republicans recent takeover of the Senate was predictable, but how the group will impact the real estate community during the next two years isn’t so clear.
The Republicans recent takeover of the Senate was predictable, but how the group will impact the housing market during the next two years isn’t so clear. However, based on the GOP's past trends, it’s safe to say regulators can expect to experience more pressure.
Republicans are not the biggest fans of the Consumer Financial Protection Bureau (CFPB), and the regulator should expect to experience more criticism and pushback. The GOP has opposed many CFPB-supported regulations including the risk-retention, ability-to-replay and qualified mortgage rules.
The Federal Reserve will also receive more pressure from Congress. Earlier this year, Republican members of the House said the FED needs more oversight, and the Wall Street Journal predicts the GOP will push for more input in interest rate decisions.
Dallas Fed President Richard Fisher told Bloomberg this morning that Senate Republicans should resist the urge to dabble in the Fed’s affairs. He said, “Think about this: Here’s a Congress that can’t even get its own budget together. Do you want them running the central bank?”
Fannie Mae and Freddie Mac may increase mortgage guarantee fees. Earlier this year, three Republican lawmakers defended g-fee increases, saying they were important tools for luring private capital back to the mortgage industry.
One of the few areas Republicans and Democrats can agree on is the privatization of Fannie and Freddie. Senator Richard Shelby, R-Alabama, will likely to take over Senate Banking and he is a big advocate of privatizing the government-sponsored enterprises.
What are your predictions? Tell us in the comments below.
