Other advisers and lawmakers are reportedly discussing how GSE privatization would be able to support the so-called “Department of Government Efficiency” (DOGE), the government cost-cutting effort led by billionaire Elon Musk, a confidant of President Donald Trump. As Congress and the White House begin the process of supporting the president’s tax-cutting priorities, the GSE privatization effort is also reportedly seen as a potential savings avenue to help fund such proposals.
But the road to get such plans implemented and vetted faces headwinds. Members of the administration have sent mixed signals on how much of a priority privatization will be, and any supporting legislation would need to be passed by a historically divided Congress with little room for Republican defection on any measure
There’s also the question of how big a priority the GSEs are for the president himself. While he and certain officials close to him spoke about GSE privatization on the campaign trail, administration officials have sent mixed signals since assuming power on how much of a priority it will be in the short to mid term.
Priority one in Congress is avoiding a potential government shutdown, since current appropriations are scheduled to lapse on March 14.
As for HUD itself, Turner is vowing to root out inefficiencies and improve home affordability access, according to the interview. In pursuit of compliance with various executive orders handed down by the president in January, Turner said that all programs and policies “will be looked at with a fine-toothed comb,” including any with language related to diversity, equity and inclusion (DEI).
During his Senate confirmation hearing, Turner also spoke about his desire to return HUD staffers to work in the office, which the Journal and other outlets have said “would likely drive some workers to leave.”
Deregulation is a priority, while Turner also referenced a desire to continue developing “opportunity zones,” a remnant from the first Trump administration in which Turner served as head of the White House Opportunity and Revitalization Council (WHORC) and oversaw private investment in these areas. WHORC was abandoned by the Biden administration.
Turner added that he may also seek to change the name of HUD itself, in an effort to “better reflect its reach, which he said should include rural and tribal communities.” But arriving at a new name would require support from lawmakers and “take a lot of time and conversation and thought,” Turner said.
The first Trump administration unsuccessfully sought to change the name of the Consumer Financial Protection Bureau (CFPB) to its name as outlined in the Dodd-Frank Act, but the effort ultimately fell by the wayside and was never implemented.
But an exit from conservatorship is a common topic of conversation in the world of housing, and organizations including the Mortgage Bankers Association (MBA) have consistently said since the November election that they would seek to work with administration officials to ensure a smooth exit for the GSEs.
Mark Calabria, the former director of the FHFA during Trump’s first term, said last year that a second Trump administration would likely seek to facilitate the GSEs’ exit from conservatorship. But he expected this process would take years to actually accomplish.
“A new Treasury secretary is also probably going to have to go through six to nine months of doing the rounds, and talking to people and hearing the enthusiasm, before they figure out that Congress isn’t going to do anything,” Calabria said during a Community Home Lenders of America (CHLA) event in Washington, D.C. in September.
