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."
Read the 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.
Amtrak, CN end decades-long dispute with eight-year agreement
The new operating agreement establishes an updated framework for the companies to work together, including processes to resolve disputes.
Judges permit Denver to divert 77,000 acre feet from the Colorado River for reservoir expansion
Overuse and climate change have caused the Colorado River’s water levels to plummet.
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Trump to overrule local leaders, lease millions of acres of America’s Pacific Island territories’ seafloors to mining companies
International law says that the Indigenous people of America’s territories have a right to prior and informed consent regarding projects that impact their countries.
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FREE Course: Walkable City 1: Why Walkability?
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Reinventing Malls: Planning Alchemy—Turning Gray Fields Into Gold
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