step 1. The current property loans system, the spot where the bodies pledges over 80% of all of the mortgages compliment of Fannie mae and you will Freddie Mac computer and you can FHA, is actually unsustainable. A beneficial reformed program have to have a small government role, prompt a revenue off individual funding, and set the danger and you may benefits in the home loan financing into the both hands of personal actors, not new taxpayers.

2. Stop Fannie mae and you can Freddie Mac’s Were not successful Business model Therefore Taxpayers Will never be Again towards the Hook to have Bad Loans and you may Bailouts. Fannie mae and Freddie Mac will be injury off through an effective in charge changeover, in addition to regulators role throughout typical minutes should not be any larger than necessary to reach the values laid out right here. One of many downfalls of your dated Federal national mortgage association and you will Freddie Mac computer model is that shareholders and you will older managers benefitted from implicit guarantees while taxpayers were towards hook up. (suite…)

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