Although they played a part in the ensuing financial panic, noted economist Mark Zandi argues why Fannie Mae and Freddie Mac don't deserve to be blamed for the housing bubble.
Zandi sees many groups to blame for the U.S. housing bubble of the last decade, but finds that Fannie and Freddie, who were making just a fraction of the subprime loans as the private sector at the height of the bubble, should not be considered among them. He sees America's broken mortgage securitization machine as the fundamental source of the problem.
"Getting history right for this dark economic period is critical if we are to design a better mortgage finance system for the future. If Fannie Mae and Freddie Mac are responsible for the debacle, then perhaps government's role in a future mortgage finance system should be minimal. But if private lenders deserve most of the blame, the case grows for giving government an important role in backstopping and overseeing the system."
FULL STORY: Fannie and Freddie don’t deserve blame for bubble
Will the Housing Bubble Swallow the Fed?
J.P. Morgan's federally-back purchase of Bear Stearns holds billions in dubious "mortgage backed securities," and Fannie Mae and Freddie Mac are pumping hundreds of billions into the market. Time may be running out for the Federal Reserve.
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.
After $10.2 Billion Treasury Deposit—What Next for Fannie and Freddie?
Fannie Mae and Freddie Mac will deliver $10.2 billion in dividends to the U.S. Treasury next month, but Congress could soon "wind down" the companies by approving the significant Johnson-Crapo bill.
Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.
San Francisco's School District Spent $105M To Build Affordable Housing for Teachers — And That's Just the Beginning
SFUSD joins a growing list of school districts using their land holdings to address housing affordability challenges faced by their own employees.
The Tiny, Adorable $7,000 Car Turning Japan Onto EVs
The single seat Mibot charges from a regular plug as quickly as an iPad, and is about half the price of an average EV.
Trump Approves Futuristic Automated Texas-Mexico Cargo Corridor
The project could remove tens of thousands of commercial trucks from roadways.
Austin's First Single Stair Apartment Building is Officially Underway
Eliminating the requirement for two staircases in multi-story residential buildings lets developers use smaller lots and more flexible designs to create denser housing.
Atlanta Bus System Redesign Will Nearly Triple Access
MARTA's Next Gen Bus Network will retool over 100 bus routes, expand frequent service.
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.
Smith Gee Studio
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City of Camden Redevelopment Agency
City of Astoria
Transportation Research & Education Center (TREC) at Portland State University
City of Camden Redevelopment Agency
Municipality of Princeton (NJ)