A Housing industry leader told FOX Business he is encouraged by the Trump administration's plans to remove Fannie Mae and Freddie Mac from government control.
President Trump signed a memorandum Wednesday ordering both the Treasury Department and the Department of Housing and Urban Development to develop a plan to end the direct government control—known as conservatorship-- while implementing safeguards to prevent another collapse of the agencies.
"Hopefully this is an earnest step forward towards getting Fannie Mae and Freddie Mac out of conservatorship. This has been an 11 year timeout," former Fannie Mae executive Tim Rood Rood said during an interview on “Cavuto: Coast-to-Coast” Thursday.
Housing and Urban Development Secretary Ben Carson called the Fannie Mae and Freddie Mac conservatorship "absurd" and he thinks the conservatorship threatens the U.S. economy.
“Freddie and Fannie have been in conservatorship for going on 12 years now – that’s ridiculous,” he told FOX Business’ Maria Bartiromo. “It puts the taxpayers at additional risks.”
Rood also detailed the complex steps the president would have to take to get Fannie Mae and Freddie Mac out of conservatorship.
“You have to deal with how to build capital, how to get the Treasury Department out, settle lawsuits...then, you need to basically clear the deck for Congress to do a long-term plan,” he said.
Since the financial crisis, there have been no “comprehensive” changes made in the housing structure, despite the “need for it,” according to the White House. As FOX Business' Charlie Gasparino was first to report, the Trump administration is also pushing for a fast-track Senate confirmation of Mark Calabria, the new director of the Federal Housing Finance Agency.