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  • Fannie-Freddie 2.0: Government Housing Polices Shouldn’t Get a Free Pass

    Secretary of Housing and Urban Development (HUD) Shaun Donovan lamented statistics from a Pew report showing Hispanics lost 66 percent of their net worth between 2005 and 2009. He went on to say: Think about all the home equity, all the savings and all the retirement funds and other assets … More

    This Legislation Would Let Government Take Over U.S. Mortgage Market

      In 2009, Congress used nearly $200 billion to bail out the housing finance companies Fannie Mae and Freddie Mac. These companies are still operating under the direct control of the federal government, and taxpayers are underwriting an even larger share of mortgages now than in 2008. Even worse, the … More

    SEC Continues Clash with Financial Stability Oversight Council

    The 2010 Dodd–Frank Act is a colossal regulatory mess that gave us, among other things, a new set of turf battles among regulators. The latest fight is between the Securities and Exchange Commission (SEC) and, well, basically all the other financial regulators. The Wall Street Journal notes: Luis Aguilar, a … More

    Housing Finance: Fannie–Freddie 2.0

    Josh Rosner, who in Reckless Endangerment (2011) exposed the cronyism of Fannie Mae and warned of a meltdown of the government-sponsored enterprises (GSEs) as far back as 2001, recognizes that the Johnson–Crapo housing finance bill gives us Fannie–Freddie 2.0: Rather than fix these problems, legislators seek to demolish the current … More

    Johnson–Crapo Housing Finance Reform Misguided

    Senators Tim Johnson (D–SD) and Mike Crapo (R–ID) recently released their new housing finance reform bill. As expected, the new bill makes the bad features of its Senate companion even worse. >>> Check Out: Johnson–Crapo Housing Finance Reform Misguided The core of both this bill and the one introduced by Senators … More

    The Four Key Things Every Taxpayer Needs to Know About Fannie and Freddie

    Five years ago, Congress used nearly $200 billion to bail out the housing finance companies Fannie Mae and Freddie Mac. These companies are still operating under the direct control of the federal government, and taxpayers are underwriting an even larger share of mortgages now than in 2008. Here are four … More

    Heritage Agrees With Schumer on Housing Finance Reform

    The whole point of a free-enterprise system is to allow both private gains and losses so that markets don’t end up with shortages and surpluses. Subsidization leads to things like inflated home prices, and inflated markets eventually crash, wreaking havoc on the way down. More

    HAMP: Focusing on Mortgage Relief Programs Misses the Big Picture

    The Washington Post has an article detailing the ups and downs of the Obama Administration’s Home Affordable Modification Program (HAMP). Heritage previously pointed out several flaws with HAMP, and it’s no surprise that nearly 30 percent of those who qualified for the program have re-defaulted on their mortgages. The Post … More

    Time to Eliminate Fannie and Freddie, Not Replace Them

    Bloomberg News is reporting that Senators Tim Johnson (D–SD) and Mike Crapo (R–ID) have completed a bill that will finally eliminate Fannie Mae and Freddie Mac. That’s good news because the former housing government sponsored enterprises (GSEs) were deemed insolvent in 2008 and have remained under Federal conservatorship ever since. … More

    Focus on Eliminating Housing GSEs, Not Giving Them a Duty to Serve

    As Congress continues to delay shutting down the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, affordable housing advocates are ramping up the pressure on the federal government to fund “housing for the poor.” These groups may have good intentions, but their way of thinking is typical of the dangers … More