Join Tim Rood as he leads an insightful conversation with Ryan Donovan, President of the Council of Federal Home Loan Banks, and his knowledgeable colleagues, Alfred Pollard and Eric Blankenstein. In this episode, the panel delves into the evolving dynamics of the Federal Home Loan Bank System amidst ongoing housing market reforms and challenges. Donovan provides a deep dive into the core mission of the Home Loan Banks - furnishing liquidity to community lenders and fueling affordable housing and community development across the United States.

Amidst the backdrop of housing finance reforms, the episode explores the Home Loan Bank System's vital role in providing stability during economic uncertainties. The discussion navigates through the system's structure as a cooperative of member-owned banks, highlighting its resilience and adaptability without succumbing to excessive risk-taking. With the recent change of leadership at the FHFA, opportunities to reset regulatory relationships and amplify efforts in affordable housing are examined. Donovan emphasizes the unique regional nature of the system and how it tailors its support to meet the specific needs of local communities, reinforcing its position as the leading private capital source for affordable housing in the U.S.

Ryan Donovan
Ryan Donovan is the President of the Council of Federal Home Loan Banks, where he oversees the organization's efforts to serve the 11 regional Federal Home Loan banks. His work focuses on providing community lenders with liquidity, supporting housing affordability, and the community development mission. Before joining the Council, Donovan held roles in financial services advocacy, leveraging his expertise to inform on housing finance reform and other key industry issues.

Tim Rood
Tim Rood is the host of the Real Talk podcast and a professional with Impact Capital. His expertise lies in housing finance and policy, offering critical insights into the government-sponsored enterprises (GSEs) and their roles in the mortgage market.

Alfred Pollard
A former General Counsel at the Federal Housing Finance Agency (FHFA), Alfred Pollard brings a wealth of experience from his time spent overseeing regulatory frameworks affecting the housing finance sector.

Eric Blankenstein
Eric Blankenstein has held significant positions at the Consumer Financial Protection Bureau (CFPB) and Ginnie Mae. His background in supervision and enforcement provides a rigorous perspective on mortgage market regulation.

• Regional Impact: The Federal Home Loan Bank System's regional structure allows for tailored support, addressing specific community needs across diverse markets.
• Resilient Framework: The cooperative framework of the Home Loan Banks discourages excessive risk-taking, ensuring stability and reliability even during financial crises.
• Affordable Housing Commitment: With a commitment to affordable housing, each bank contributes a significant portion of net earnings to housing and community development initiatives.
• Regulatory Relationships: New administrative leadership brings opportunities to strengthen and optimize regulatory collaboration for enhanced housing finance support.
• Liquidity Provision: The Home Loan Banks serve as a critical liquidity source for its members, essential for maintaining economic stability and supporting housing finance.

Join host Tim Rood, CEO of Impact Capital, and his distinguished guests Jim Parrott, Alfred Pollard, and Eric Blankenstein, as they delve into the volatile and dynamic landscape of U.S. housing finance under the new administration. In this episode of the Real Talk Podcast, they explore topics ranging from GSE reform and fiscal policy strategies to the restructuring efforts of federal agencies. As the political climate continues to evolve, they provide expert predictions on the future for the housing market and financial regulations.

The episode starts with an analysis of the post-election atmosphere, highlighting the uncertainty and rapid inflow of information over recent weeks. The conversation shifts to a detailed examination of the Trump administration's initiatives, including the newly appointed HUD Secretary Scott Turner, and Bill Pulte’s nomination for FHFA director. A key part of the discussion focuses on the implications of potentially ending the conservatorship of GSEs without implicit guarantees, unpacking the regulatory and financial consequences that come with it. Moreover, the guests ponder on the potential of significant regulatory disruption, the strategic role of supply-side housing solutions, and the balance of policy risk under different political factions.

• Jim Parrott: Jim Parrott is a former executive at the National Economic Council under President Obama and is currently the principal of Parrot Ryan Advisors. Known for his insightful writings and expert knowledge on Government-Sponsored Enterprises (GSEs) and housing reform, Jim adds a depth of expertise to discussions surrounding economic policy and housing finance.

• Alfred Pollard: Alfred Pollard served as the former general counsel of the Federal Housing Finance Agency (FHFA). With extensive experience in overseeing legal issues pertaining to federal housing finance, Alfred brings a wealth of knowledge on regulation and policy to the conversation.

• Eric Blankenstein: Eric Blankenstein previously held significant positions, including the head of supervision and enforcement for the Consumer Financial Protection Bureau (CFPB) under Donald Trump and head of Ginnie Mae during the same period. His insights into regulatory environments are informed by frontline experience in financial oversight.

• The new administration's rapid pace of change and policy announcements has left both industry insiders and stakeholders navigating a sea of uncertainty and significant policy shifts, notably in housing finance and GSE conservatorship.

• The discourse highlights the possibility of strategic shifts in housing policy towards addressing supply-side challenges as a means to tackle affordability rather than predominantly focusing on demand-side solutions.

• Jim Parrott’s recent paper underscores the complexities and possible market disruptions associated with releasing GSEs from conservatorship without implicit government guarantees, posing potential impacts on mortgage rates and financial stability.

• Discussions around the CFPB highlight a possible realignment of the bureau towards either reigning in existing structures or pursuing a more dramatic "burn it down" approach, reflecting populist pressures from both political camps.

• The administration’s disruptor approach, including the sweeping federal hiring freezes and executive orders, could lead to significant restructuring of federal agencies, introducing challenges and opportunities as Doge and related initiatives seek efficiency and savings.

Stay connected with the Real Talk Podcast for more enlightening discussions with industry experts and thought leaders.

Impact Capital's Real Talk, host Tim Rood engages with esteemed guests Mark Calabria, Eric Blankenstein, and Alfred Pollard to delve into intricate discussions around the future of GSE reform and the consequential impacts of new housing policy under a potential administration shift. With their expert lenses, the speakers critique current regulatory architectures and explore the balance between agency independence and governmental oversight, addressing the roles that major players like FHFA and CFPB will occupy in reshaping the housing finance landscape. Listen to the people who had their hands on the joystick last time, and maybe again this time.

Mark Calabria
Mark Calabria is a renowned economist and former Director of the Federal Housing Finance Agency (FHFA) under President Donald Trump. With a career spanning interactions at the highest levels of economic policy, he has advised the Cato Institute and worked as the Chief Economist for Vice President Mike Pence. Known for his role in crafting the HERA legislation that empowered the FHFA to place government-sponsored enterprises (GSEs) into conservatorship, Calabria's insights are pivotal in navigating housing finance and economic policy.

Eric Blankenstein
Eric Blankenstein is a former head of supervision and enforcement at the Consumer Financial Protection Bureau (CFPB). As an accomplished lawyer, he has vast experience in policy enforcement and regulatory oversight, contributing significantly to the legal landscape in his field. Blankenstein continues to provide strategic guidance and legal expertise to firms navigating complex financial regulations.

Alfred Pollard
Alfred Pollard served as the General Counsel of the FHFA and has established a formidable reputation as an expert in housing finance law. With an authoritative voice on legal compliance and a published author, Pollard’s influence extends into policy formulation and implementation affecting national housing finance.

• Mark Calabria asserts that the exit of GSEs from conservatorship does not equate to reform; substantial congressional intervention is necessary.
• Eric Blankenstein highlights the perils of regulation by enforcement, advocating for clearer rulemaking to mitigate compliance uncertainties.
• Alfred Pollard emphasizes using existing statutes to guide and constrain the activities of FHFA, advocating a focus on prudential regulation.
• The discussion reflects concerns over the Biden administration's handling of treasury roles and housing policy, calling attention to their potential impacts on housing affordability.
• Rising inflation and mortgage interest rates are identified as critical factors influencing future policy adjustments and market stability.