Fannie and Freddie Move towards Privatization
Episode Description
The long quest to re-privatize Fannie Mae and Freddie Mac is pushing ahead. Wharton’s Susan Wachter explains where they are heading. More: http://knlg.net/1CPfMxI 📂 Finance & Accounting;Real Estate 🏷️ Research
Brief Summary
Fannie Mae and Freddie Mac's reforms focus on privatization, mortgage transparency, and private capital involvement to stabilize the housing market.
Key points
- Government Control of Fannie and Freddie. Fannie and Freddie came under government control during the 2008 housing crisis to prevent a meltdown.
- The Need for Reform. There is a consensus on the need for reform in the housing finance system, but implementation remains contentious.
- New Developments in Risk Capital. New securities are being introduced to bring private capital into Fannie and Freddie, taking first loss credit risk.
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Episode highlights
- Government Control of Fannie and FreddieFannie and Freddie came under government control during the 2008 housing crisis to prevent a meltdown.“The intervention was necessary.”1:08Apr 17, 2015
- The Need for ReformThere is a consensus on the need for reform in the housing finance system, but implementation remains contentious.“What do we mean by reform?”14:56Apr 17, 2015
- New Developments in Risk CapitalNew securities are being introduced to bring private capital into Fannie and Freddie, taking first loss credit risk.“Much is happening.”17:13Apr 17, 2015
Tension
40/ 100Low tension
