| At an event Tuesday at the American Enterprise Institute (AEI), several housing experts discussed their proposal to eliminate the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac and privatize most of the housing finance system.
The AEI analysts argue that a government guarantee is not necessary to ensure a liquid housing finance market. On the contrary, they contend that Fannie Mae and Freddie Mac have made the housing market less efficient and increased costs for borrowers. Notably, the experts claim that the plan can be carried out unilaterally by the Federal Housing Finance Agency (FHFA) and would not need approval from Congress. They expressed hope that President Trump’s nominee to serve as FHFA director beginning in 2019, after current FHFA Director Mel Watt’s term expires, will implement the plan. They also expressed skepticism that Congress would enact housing finance reform legislation before then. You can view a video recording of the event on AEI’s website. One of the plan’s authors, Ed Pinto of AEI, will address NCSHA’s Legislative Conference on Monday, March 5. |
AEI Housing Experts Release Plan for Winding Down Fannie Mae and Freddie Mac
Oklahoma Coalition for Affordable Housing 