Cut Loose The Mortgage Giants

Firms like Fannie Mae and Freddie Mac should be stripped of their government-sponsored advantages.
January 2, 2004, 5am PST | Chris Steins | @urbaninsight
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"As government-sponsored enterprises, both Fan and Fred have what amounts to a symbolic credit line of $2.25 billion with the US Treasury. That allows them to borrow at rates lower than competitors... In fact, the Fed study finds the support is worth between $119 billion and $164 billion. After taxes, homeowners receive $44 billion of that; Fan and Fred keep $72 billion. Further, the report finds that huge benefit lowered the cost of a home mortgage by only a minuscule 0.07 percent."

Thanks to Chris Steins

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Published on Thursday, January 2, 2003 in The Christian Science Monitor
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