“The Obama Treasury Department‘s new housing reform report comes to the wise conclusion that Fannie Mae and Freddie Mac must be eliminated. The Tea Party and Republicans should be saying, “We can work with this.”
The fully privatized mortgage finance system outlined in the report is by far the best way to fix the housing market and help the economy’s long-term health and stability. Banks would know they faced going belly-up if they made risky loans to unqualified buyers. Taxpayers wouldn’t be bailing out mortgage companies or homebuyers who made bad decisions.
However, the report offers three proposals, and two would continue to permit federal backing of mortgages, which is in direct conflict with the report’s own admission that government guarantees have not served the public well.” Read more.
“The End of Fannie and Freddie”
The Washington Times, February 15, 2011.
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