This fall marks the seventh anniversary of the federal government’s move to take conservatorship of Fannie Mae and Freddie Mac, and the nation should thank the government-sponsored enterprises (GSEs) for restoring confidence and liquidity in mortgage finance during a time of crisis. Without their intervention and involvement, our nation’s housing system would have fared far worse than what we experienced.
With the passage of time, however, their continued, absolute control over all mortgage underwriting has become a barrier to homeownership and a hindrance to a vibrant national housing market.
It is now time to complete the job of restoring our housing economy to full strength by creating a viable, private-label secondary market where lenders can sell to private investors the loans they originate that don’t meet the rigid guidelines for loans the GSEs will buy.
via Rebirth of housing market calls for moving past Fannie and Freddie – The Washington Post.
