April 11, 2018
Fannie and Freddie Ten Years After the Financial Crisis
Ten years after the start of the financial crisis, Congress has done little to reform the U.S. housing finance system, and especially the government-sponsored enterprises (GSEs) that stood at the heart of the crisis. AAF’s Director of Financial Meghan Milloy looks back at what has – and, more important, what hasn’t – been done to reform the GSEs, and what issues that inaction has caused. She also outlines the current problems confronting Fannie Mae, Freddie Mac, and overall U.S. housing policy, problems that point the way for reform.
The GSEs are becoming policymakers on their own, with insufficient oversight, and a lack of transparency. If recent changes indicate the GSEs’ trajectory, we may soon find ourselves right back where we were before the financial crisis….If Congress will not soon consider legislation to correct the GSEs’ missteps, it at least should require more robust oversight to shed light on the current state of affairs in housing finance.
Click here to read the analysis.