GSEs (Fannie/Freddie),FHA&HUD

What's the Administartion Going to Do With the GSEs?

Posted on Thursday, March 25, 2010

After reform, will the GSEs will exist in the same form as they did in the past?

Will private gains be subsidized by public losses? Capital and underwriting standards be appropriate? Consumer protection be strengthened? Excessive risk-taking will be restrained?

The two probably won't be abolished, but rather overhauled via a transition plan so that private capital can return. The GSE infrastructure (including crony jobs) will be hard to change.

Instead of answers, the administration has indicated they will offer a list of questions for public comment April 15, 2010 to eventually achieve a bipartisan reform plan. One would suppose like what happened with health care.

If we're going to subsidize housing the past few years have shown we need to integrate protections for borrowers...against the residential loan originators, lenders, serviceers and investors. But also protections for borrowers agiants themselves.


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