Treasury Releases Housing Finance Proposal to Reduce Footprints of Fannie and Freddie

Treasury’s Sept. 5 Housing Finance Plan includes recommendations to put Fannie and Freddie on a path to privatization and ultimately end the conservatorships. The Plan recommends that Congress and FHFA reconsider permitting captive insurance membership in the Federal Home Loan Banks (FHLBs). The Plan also recommends that Congress and FHFA revisit the GSE multifamily framework to ensure “that the Federal Government’s support of the multifamily secondary market is tailored to an “affordability mission.”

Prior to a 2016 FHFA rule which effectively disallowed captive membership, mREITs were FHLB members through captive insurance subsidiaries.

(Contact: Victoria Rostow at

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