|There's pretty broad agreement in Washington that government support for Fannie Mae and Freddie Mac should ultimately be wound down, or at least rolled back in scope, given their role in the housing crisis and the resulting cost to taxpayers. But there are major differences over how quickly we should get there. Paul Ryan wants to accelerate the process, pushing for the government to slash subsidies and reduce its loan portfolio in the next budget. Others warn, however, that such steps are premature and threaten to upend a still-fragile housing market. Housing experts warn, however, that closing down Fannie and Freddie too quickly, without taking adequate steps to create a private alternative, would massively disrupt the housing market and the economy at large. Fannie and Freddie's primary functions are to buy mortgages from primary lenders, then package them into securities...
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OpedNews volunteer from 2005 to 2013.
Amanda Lang was a wonderful member of the Opednews team, and the first volunteer editor, for a good number of years being a senior editor. She passed away summer 2014.