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    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

    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

    Phil Gramm’s Excellent Tax Reform Game Plan Has Just One Flaw

    The momentum for tax reform continues to build. Adding to it is former Senator Phil Gramm (R–TX), who wrote an op-ed in The Wall Street Journal laying out a tax reform “game plan” for Congress to follow. Gramm pretty much nails the most important things tax reform must accomplish to … 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

    Another Subprime Idea from Obama

    The Obama Administration is reportedly pushing banks to increase mortgage lending to people with relatively weak credit in hopes of boosting home sales. But the very same policy under Presidents Clinton and Bush contributed mightily to the housing bubble that ultimately devastated millions of families in mortgage default. Credit is … More

    Feds Foreclose on $2 Billion Consultants’ Bill

    President Obama assured the nation in his State of the Union speech on Tuesday that the housing market is “healing,” although mortgage credit remains extremely tight. But that’s not too surprising considering that banks have been forced to shell out $2 billion for a government-mandated paper chase. The case in … More