USA Today‘s Darrell Delamaide quoted PPI’s Jason Gold on GSE reform.
He recalled the debate over the future of the two government-controlled entities that back most mortgages today — Fannie Mae and Freddie Mac — caused by the new bipartisan Senate bill that would wind down and replace Fannie and Freddie with a complex mix of private lending and government guarantees. He reminded with PPI that reform should prevail over liquidation regarding Fannie and Freddie.
Shuttering the GSEs completely … makes little sense. The idea that you can completely dismantle a housing finance infrastructure that is the foundation of an $11 trillion market is a fantasy the likes of which is only found in Washington.
Read the entire USA Today article here.