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Another Plan Emerges for Fannie/Freddie Reform

Posted To: MND NewsWire

Last week, with considerable fanfare , the Mortgage Bankers Association released its plan for reforming the housing finance system, including a resolution of the nine-year old federal conservatorship of the government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. This week ICBA, which represents independent community banks, more quietly released its blueprint for reform. The paper, titled ICBA Principles of GSE Reform and a Way Forward notes that the placement of the GSEs in conservatorship in 2008 was described back then as a “temporary time-out” to allow both companies to stabilize. After eight years, and into a third presidential administration, Fannie and Freddie, although they have returned to profitability , worked through most their defaulted loans, and continued to provide…(read more)

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Source: Mortgage News Daily

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