Tag: mortgage market
The functions of Fannie Mae and Freddie Mac -- liquidity, stability, and access -- remain important for the housing economy. Indeed, the two companies today are providing more than 70 percent of all the financing for housing even while under conservatorship. But their collapse into the federal government's arms is causing a wholesale reevaluation of how best to provide those functions in the future.
For decades, the United States government, pushed by its business partners in the financial and real estate world, "marched the nation into a delusion." The fantasy is that we can create wealth for millions of homeowners by enriching investors, brokerage and mortgage companies and Wall Street bankers "to the fullest extent possible with few boundaries."