is the former regulator of government-sponsored enterprises (GSEs) in the United States. In this article, he was asked five questions about his career and the legacy of GSEs.
The first question posed to Falcon was about the importance of GSEs in the United States. Falcon responded that GSEs play a crucial role in providing mortgage liquidity to the market. Without them, there would be a shortage of loan funding, making it increasingly difficult for prospective borrowers to purchase homes. He noted that GSEs are important stakeholders and active participants in the mortgage industry, providing an essential service that allows more Americans to access homeownership.
The second question focused on the history of GSEs. Falcon stated that GSEs have had a long and checkered history of regulation. He noted that in the past, the oversight and regulation of GSEs were inadequate, leading to the financial crisis of 2008. However, since then, the government has taken steps to improve oversight and ensure that GSEs are operating within the law.
The third question asked Falcon to comment on the current state of the GSEs. He replied that the current environment for GSEs is incredibly challenging. The past decade has seen a tremendous amount of change in the industry, with new regulations, policies, and competition from private lenders. Despite these changes, Falcon believes that the GSEs remain committed to their mission of providing affordable housing for more Americans.
The fourth question was about the future of GSEs. Falcon believes that GSEs will continue to exist in the future, though he notes that the industry is undergoing significant reforms. He believes that GSEs will need to modernize their operations and become nimbler in order to remain competitive. Additionally, he believes that the federal government could still decide to privatize them in the future, although this is unlikely in the near term.
The fifth and final question was about the role of Falcon within the GSEs. Falcon's primary responsibility as regulator was to ensure the safety and soundness of the GSEs. He also worked to ensure that the GSEs complied with rules and regulations and that they served the public interest. Ultimately, Falcon's goal was to ensure that GSEs acted responsibly and in accordance with the law.
is the former regulator of government-sponsored enterprises (GSEs) in the United States. GSEs are important stakeholders and active participants in the mortgage industry which provide vital services to more Americans to access homeownership. They have had a checkered history and were blamed for the financial crash in 2008 due to inadequate regulation. Over the past decade, regulations surrounding GSEs have improved, but they still face numerous challenges from changing regulations, policy, and private lenders. Falcon believes GSEs will remain in place for the foreseeable future; however, they must modernize their operations to remain competitive. Falcon's role as regulator was to ensure the safety and soundness of the GSEs, and ensure that they complied with all rules and regulations and that they served the public interest. He worked to ensure that GSEs acted responsibly and in accordance with the law, helping to preserve mortgage liquidity and allowing more people access to homeownership.
This article was contributed on Dec 06, 2023