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.
Seattle Legalizes Co-Living
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NYC Officials Announce Broadway Pedestrianization Project
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The City of Broken Sidewalks
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Denver Transit Board Approves $1.2 Billion Budget
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A Framework for Inclusive Tree Planting in Los Angeles
The Los Angeles Urban Forest Equity Collective has developed an equity-centered tree-planting framework and toolkit to address historic underinvestment and mitigate extreme heat in vulnerable neighborhoods.
Rivian Joins Movement Toward Universal EV Charging
As more automakers like Tesla, Ford, and Rivian make their charging infrastructure compatible, the shift could lead to the faster development of a nationwide EV charging network.
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.
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American Planning Association, Sustainable Communities Division
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