The Underappreciated Role of Freddie Mac and Fannie Mae in Access to Affordable Housing

A housing researcher formerly with the Obama administration's Treasury Department explains the role of government-sponsored enterprises in opening the housing market with more affordable options.

2 minute read

July 10, 2019, 6:00 AM PDT

By James Brasuell @CasualBrasuell


Brownstones

Brian Goodman / Shutterstock

Michael Stegman, housing policy researcher for multiple think tank and education institutions, writes about the role of government-sponsored enterprises (GSEs), like Freddie Mac and Fannie Mae in the housing affordability crisis, and the ability for Congress and the Trump administration to reform the secondary mortgage market.

Much of Stegman's work focuses on the policy responses to the roots of the current housing affordability crisis in the foreclosure crisis and housing market crash of the Great Recession. Working as counselor for housing finance policy to the Secretary of the Treasury during the Trump Administration, Stegman pushed for a bipartisan reform bill referred to as Johnson-Crapo that failed to reach the Senate floor for a vote.

Among the biggest stumbling blocks to expanding support for the Senate bill in 2014 was that members on the left and right wings of both caucuses refused to sign on, over deep-seated differences in their respective views about the role of the GSEs (or their potential successors) in expanding access to affordable mortgage financing and funding for subsidized housing. Disagreements are based partly on differing perspectives on the role of the government in housing, but also on whether affordable housing resources raised in the secondary market can be responsibly and effectively deployed to expand the affordable housing supply or if they will lead to an undesirable and inefficient distortion of housing markets.

That lack of consensus persists today, according to Stegman. Affordable housing advocates concerned about the Trump administration's attacks on fair housing rules and other forms of affordable housing assistance "might not be aware of the GSEs’ longstanding obligation to support affordable housing finance," according to Stegman. Fannie and Freddie's central roles in federal housing policy, adds Stegman, "also impact the scale and effectiveness of programs and policies outside of the GSEs, including HUD, FHA/Ginnie Mae, and the VA, which support the housing needs of millions of low-income Americans."

Monday, July 8, 2019 in Joint Center for Housing Studies of Harvard University

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

June 25, 2025 - Diana Ionescu

Map of Western U.S. indicating public lands that would be for sale under a Senate plan in yellow and green.

Map: Where Senate Republicans Want to Sell Your Public Lands

For public land advocates, the Senate Republicans’ proposal to sell millions of acres of public land in the West is “the biggest fight of their careers.”

June 19, 2025 - Outdoor Life

Person wearing mask walking through temporary outdoor dining setup lined with bistro lights at dusk in New York City.

Restaurant Patios Were a Pandemic Win — Why Were They so Hard to Keep?

Social distancing requirements and changes in travel patterns prompted cities to pilot new uses for street and sidewalk space. Then it got complicated.

June 19, 2025 - Diana Ionescu

Close-up of full beer glass with purple train-themed design sitting on bar between two frosty tall cans.

Platform Pilsner: Vancouver Transit Agency Releases... a Beer?

TransLink will receive a portion of every sale of the four-pack.

7 hours ago - Cities Today

Vintage red Toronto streetcar passing in front of Rogers Arena in Toronto, Canada.

Toronto Weighs Cheaper Transit, Parking Hikes for Major Events

Special event rates would take effect during large festivals, sports games and concerts to ‘discourage driving, manage congestion and free up space for transit.”

June 30 - blogTO

Map of Berlin with ring roads in green and red.

Berlin to Consider Car-Free Zone Larger Than Manhattan

The area bound by the 22-mile Ringbahn would still allow 12 uses of a private automobile per year per person, and several other exemptions.

June 30 - Streetsblog USA

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.