Notwithstanding a great deal of tough language in September 2008 from our government about how Fannie and Freddie were a disastrous case study in government failure, not much has been done to get rid of the mortgage twins. Here is part of a piece I had in the Hill blog this week about how to move them away from their status as wards of the state and towards a freer mortgage market, a wind down process that can begin immediately:
“The Romney-Gingrich political grudge match over Freddie Mac presents an opportunity to ask a basic question: Why are Fannie Mae and Freddie Mac still operating? Michael Williams’ recent resignation as CEO of Fannie Mae has set up a struggle over the direction of the two mortgage behemoths. It comes just a few months after Freddie Mac’s chief executive Ed Haldeman announced his departure. Will the two mortgage giants continue to muddle along in conservatorship as they have since September 2008, or will these resignations act as a catalyst to put them in receivership and wind down their operations? The latter scenario would enable taxpayers to put the fiscal disaster of these two government-sponsored enterprises behind them.”
For the full article follow the link.