While proposed corporate tax cuts by the Trump administration would largely be good for Fannie Mae and Freddie Mac, they would be required to make an initial adjustment that could force a draw from their line of credit with the Treasury Department.

Such a move would likely alarm members of Congress, who have been anxiously watching the government-sponsored enterprises' dwindling capital levels as they continue to debate housing finance reform. If the GSEs must take a draw from the Treasury, lawmakers are likely to speed efforts to reform the system or put pressure on the firms’ regulator to allow them to rebuild capital.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.