Proposed FHFA Director Calabria Plans To Release Fannie Mae And Freddie Mac From Conservatorship

By Anthony B. Sanders

With Adequate Capital To Avoid Another 2008 Debacle

The Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie were placed into conservatorship with their regulator back in 2008 after housing prices declined and mortgage defaults spiked.

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But since the catastrophic year of 2008,  Fannie Mae (as an example) generated substantial net revenue after 2008. [This brings into question the wisdom of placing Fannie and Freddie into conservatorship.]

Continue reading Proposed FHFA Director Calabria Plans To Release Fannie Mae And Freddie Mac From Conservatorship

10 Years After: Where are the GSEs 10 Years After the Financial Crisis?

By Anthony B. Sanders

Meghan Milloy at American Action Forum has an interesting piece today entitled “Where are the GSEs 10 Years After the Financial Crisis?”

It reminds me of Ten Years After’s “I’m Going Home.” But in the case of mortgage giants, Fannie Mae and Freddie, the song should be titled “They’re Going Nowhere.”

“Unfortunately, 10 years later, the GSEs are still in conservatorship, Congress has passed no major legislation to overhaul the GSEs or the housing-finance system as a whole, and Fannie and Freddie are returning to some of the dangerous activity that led to the last crisis. Even five years ago The Wall Street Journal said that fixing the GSEs was the “largest single piece of unfinished business from the financial crisis.””

True, Fannie Mae and Freddie Mac stock crashed starting in Q4 2007 culminating in both being placed into conservatorship with their regulator, FHFA. Where they remain today.

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Continue reading 10 Years After: Where are the GSEs 10 Years After the Financial Crisis?