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TH E M R EP O RT | 25 FEATURE release. "The path out of conser- vatorship that we will establish for Fannie and Freddie is not going to be calendar dependent. It will be driven, first and foremost, by their ability to raise capital," he said. If one GSE becomes ready for privatization before another, FHFA will consider releasing them out of conservatorship at different times. Regardless of the timing, the White House has stipulated that upon the termination of conser- vatorship, Treasury and FHFA need to develop a mechanism that ensures the federal government is compensated for any explicit and implicit guarantee provided to the GSEs or their successors, specifi- cally "in the form of an ongoing payment" to the U.S. The White House has also called on regulators to ensure that, incorporating many of the priorities listed above, the GSEs' post-conservatorship missions and portfolios are appropriate. Regulators must additionally outline a vision for heightened prudential and safety and soundness require- ments for the next generation GSEs, "designed to prevent future tax- payer bailout and minimize risks to financial stability." Great Expectations A s a host of new housing leaders, including Calabria, Mnuchin, Kathy Kraninger, Director, CFPB, Ben Carson, Secretary, HUD, and Brian Montgomery, FHA Commissioner, coalesce around the tools at their disposable, the mortgage industry should finally expect to see gradual steps taken towards housing finance reform. Calabria has tellingly prom- ised, "If there's one thing I know for sure it's that Fannie and Freddie will look much different at the end of my five-year term than they do today." More than ten years after the financial crisis, the mortgage indus- try certainly understands Calabria's sentiment, "The status quo is no longer an option." After executing the objectives set forth by the Trump administra- tion, regulators have assured that Congress will be provided ample time to consider the housing finance reform framework and take any remaining necessary legislative steps to conclude their efforts. Between now and Congress' eventual action, regulators have a long runway to get housing finance reform off the ground—once and for all. BRIAN O'REILLY is Managing Director and Head of the SitusAMC Advisory and Consulting business. Previously, O'Reilly was President of The Collingwood Group, which he co-founded in 2007. The Collingwood Group was acquired by Situs in 2017. Earlier, he was Fannie Mae's Director of Automated Underwriting and Risk Management Solutions, where he managed several customer-facing, risk management technology platforms. Before joining Fannie Mae, O'Reilly served as EVP and General Counsel of a large regional mortgage originator and practiced law with several international law firms. Leadership means listening. At Cenlar FSB, the nation's leading mortgage subservicer, we take the time to sit down and understand your organization's unique goals and objectives. Our custom-tailored subservicing solution can enhance your borrower service experience, reduce the burden of regulation and compliance, and help you grow and succeed. Find out more about how our leadership can deliver a solution perfectly aligned to your needs. www.cenlar.com 1-888-SUBSERVE (782-7378)