Mat Ishbia: GSEs acting ‘private’ in conservatorship could be best of both worlds

Mat Ishbia, the president and CEO of United Wholesale Mortgage (UWM), said last week he doesn’t think that releasing Fannie Mae and Freddie Mac from conservatorship is a major focus for the Trump administration — and he isn’t sure “whether it should be.” 

One thing he is confident about: If ending the conservatorship results in higher mortgage rates, it’s unlikely the government will move forward with it. In fact, Ishbia suggested the current arrangement is working well.

“Quite honestly, Fannie Mae and Freddie Mac are acting pretty good right now. It’s been working pretty well. [They] spit off a lot of cash to the government,” Ishbia said in a video posted to YouTube on Monday.

His comments follow recent posts by President Donald Trump on Truth Social, where he raised the possibility of releasing the government-sponsored enterprises (GSEs).

On May 21, Trump said he was giving “serious consideration” to doing so. And on May 27, he said the federal government would continue to provide an implicit guarantee.

Federal Housing Finance Agency (FHFA) Director Bill Pulte has stated publicly that any decision on ending the conservatorship would be up to the president. 

“Fannie Mae and Freddie Mac competing, innovating and doing different things with new leadership from Director Pulte is a big deal, and we’re already starting to see some of those positive things happening right now,” Ishbia said.

“Fannie Mae and Freddie Mac acting more ‘private,’ but still being in conservatorship, might be the best of both worlds.” 

Since taking over at the FHFA, Pulte has cut staff and top executives; championed a return-to-office mandate; and tweeted out housing orders that terminated special purpose credit programs (SPCPs), among other things.

Pulte also publicly questioned the cost of FICO credit reports and announced a partnership between Fannie Mae and Palantir Technologies to root out mortgage fraud.

On regulatory oversight, Ishbia said that the Consumer Financial Protection Bureau (CFPB)’s approach under Trump would be more measured. According to him, the bureau is not trying to go after every mortgage company for every little thing.

“They’re basically looking at more holistically and saying: ‘Let’s make sure we do right by consumers,’” Ishbia said.

Trump recently pulled Jonathan McKernan’s nomination to lead the CFPB after tapping him for a leadership role at the Department of the Treasury.

Russell Vought is currently serving as the bureau’s acting director. Under his leadership, the CFPB rescinded 67 guidance documents issued since 2011 — many of which impact the mortgage sector.