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    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

    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

    How to Free the Housing Market from Government—and Lower Your Mortgage Payments

    President Obama said something truly great in his State of the Union Address this year. He told Congress: [S]ince the most important investment many families make is their home, send me legislation that protects taxpayers from footing the bill for a housing crisis ever again, and keeps the dream of … More

    GSE Reform: Eliminate Fannie and Freddie, but Don’t Replace Them

    The President’s State of the Union address overshadowed some very important news relating to housing finance reform. Last Wednesday, Senators Bob Corker (R–TN) and Mark Warner (D–VA) promised to renew efforts to pass a bill they introduced in June 2013 that would close down Fannie Mae and Freddie Mac. It … More

    GSE Reform: Fannie and Freddie Revenue Distracting from Housing Finance Reform

    Despite what a growing number of voices are postulating, Fannie Mae and Freddie Mac have not returned to profitability. The two former government-sponsored enterprises (GSEs) are generating revenue, but it’s not because the U.S. housing finance system has been fixed. The three main reasons the GSEs are flooding the Treasury … 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

    Federal Housing Administration Is Undermining Responsible Housing Policy

    The Federal Housing Administration (FHA) has discrepancies in its loan portfolio that are unlikely to be resolved anytime soon and will continue to pose a burden to the recovery of the housing market. With little more than $32 billion in reserves, the FHA has an estimated $70 billion in future … 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