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    GSE Reform: FHFA Move to Crowd Out Private Mortgage Capital

    Newly appointed Federal Housing Finance Agency (FHFA) Director Mel Watt is delaying the scheduled increases of the guarantee fee that Fannie Mae and Freddie Mac charge mortgage lenders. This misguided move will discourage other firms from competing in the secondary mortgage market Fannie and Freddie charge this guarantee fee (or … More

    Will the Federal Housing Finance Agency Forgive Borrowers’ Debts?

    Today Representative Mel Watt (D–NC) assumes his position as director of the Federal Housing Finance Agency (FHFA), which manages the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. Acting director (since 2009) Ed DeMarco’s departure could mark just the beginning of several key policy shifts at the FHFA, such as … More

    Revisionist History: Absolving Fannie Mae and Freddie Mac

    A newly released book, The Mortgage Wars, aims to rewrite history and absolve Fannie Mae and Freddie Mac of having any part in the financial crisis. Written by former Fannie Mae Vice Chairman and CFO Tim Howard, the book blames the crisis on Alan Greenspan and Larry Summers. According to … More

    The Volcker Rule: Three Years and Nearly 1,000 Pages Later

    Five financial regulatory agencies have completed the final rules to implement the Volcker Rule, a regulation required by the Dodd–Frank bill that is supposed to protect taxpayers by restricting banks’ financial activity. The rule would prohibit banks from engaging in what’s known as proprietary trading—that is, making risky investments solely … More

    GSE Reform: Housing Finance Experts on the Future of Fannie and Freddie

    Nearly five years after one of the largest federal government bailouts in American history and the enactment of a colossal federal regulatory law (Dodd–Frank), policy leaders still wrestle with the question: How to end government guarantees in the U.S. housing finance system? To address this issue, Heritage analysts John Ligon … More

    Tax Revenue Rose Five Times Faster Than Spending Fell in 2013

    The monthly Treasury statement of the actual budget figures for 2013 this week shows tax revenue rising five times faster than spending fell in 2013. Taxes revenue climbed by 13.2 percent from $2.45 trillion in 2012 to $2.77 trillion in 2013. Spending, on the other hand, fell by only 2.4 … More

    New Fannie Bond Issue Elevates Need for Higher G-Fees

    As Congress contemplates legislation to end Fannie Mae and Freddie Mac, the government agency running their operations is trying to make that task easier. However, the Federal Housing Finance Agency (FHFA) seems to have run into trouble with Dodd–Frank regulatory issues, thus making the task of winding down the companies … More

    Lowering Loan Limits: An Overdue Step to Bringing Private Capital Back to Housing

    As legislation moves through Congress to address the fate of Fannie Mae and Freddie Mac, the Federal Housing Finance Agency (FHFA) has indicated it will decrease the limit on the size of the loans these institutions can purchase starting in 2014. The FHFA should decrease the loan limit independent of … More

    Obama: End Fannie and Freddie, but Keep Government in Housing Business

    President Obama lent his voice today to the growing consensus in Washington that federally sponsored housing giants Fannie Mae and Freddie Mac must go. While this is a welcome stance, he also called for new government guarantees for the housing finance market, which would only perpetuate the dangerous taxpayer subsidy … More

    U.S. Mortgage Market Reform: Corker–Warner Bill Misguided

    Draft legislation by Senators Bob Corker (R–TN) and Mark Warner (D–VA) would wind down federally sponsored housing finance giants Fannie Mae and Freddie Mac, but it suffers from many of the same problems the system faced over the past two decades. The bill would replace the Federal Housing Finance Agency, … More