The new administration will take office in less than two months, and with it comes the potential privatization of Fannie Mae® and Freddie Mac® (the GSEs). In episode twenty-nine of the RiskWire Webcast, hosts Reena Agrawal, Research Economist, and Eric Fox, Chief Economist, discuss various viewpoints regarding the privatization of the GSEs and what it could mean for the housing market going forward.
Episode Highlights:
• Fannie Mae originated in 1938 and was meant to create a steady supply of funds for home mortgages, whereas Freddie Mac originated in 1970, further expanding the secondary mortgage market.
• Advocates of the privatization of the GSEs believe the original intention of Fannie and Freddie was that they were to be private companies.
• Those in opposition to the privatization worry it will lead to higher mortgage rates, reduced support for affordable housing, and an increase in market volatility.
For a more complex understanding of what this privatization could mean regarding the housing market, watch episode twenty-nine of the RiskWire Webcast: Webcast & Interviews – RiskWire, powered by Veros
And for more about the housing market and economic trends, visit RiskWire.com now!
