Biden’s influence on the future of Fannie Mae and Freddie Mac – the government-controlled companies behind about half of all home mortgages in the US – also cling to the courts. This year, the Supreme Court ruled that a law says the director of the Consumer Finance Protection Department can only be fired for unconstitutional reasons, giving the president more time to remove the head of this agency.
The senior court is expected to issue a ruling next year on a similar case that challenges the structure of Fannie and Freddie, the Federal Housing Finance Authority, also run by a director. Most with a term of 5 years can only be fired for reasons.
A Biden-appointed FHFA director will push the agency̵7;s plan to end the 12 years of Fannie and Freddie under government control, given Democrats’ fears that affordable housing will be less. take priority over new private companies. These companies also play a key role in the federal government’s response to the coronavirus economic crisis, so plans to develop them could be canceled entirely.
But Biden will have an easier time quickly replacing the currency calculator, a top bank manager, giving him the opportunity to stop Trump’s overhaul to the Community Reinvestment Act, the landmark law designed to combat discrimination or discrimination in lending.
Former Editor-in-Chief Joseph Otting rewriting the rules, under the 1977 law aimed at helping low-income people and minorities borrow, was subjected to Democrats, community groups and even banks criticize. Democrats warn that the new approach will place too much importance on a bank’s investment in poorer regions, rather than getting community input on what they need.
Both the FDIC and the Federal Reserve have also signaled an interest in updating the final rules, as they have not been modernized since the advent of online banking. Along with the lack of support for the Office of Monetary Control’s approach and a new focus on racial equity in general, and banking institutions may move CRA to the top of the list of priorities. under the Democratic government.