QUOTE AND NEWS
TheStreet.com  Apr 22  Comment 
NEW YORK (TheStreet) -- Private mortgage insurers, which underwrite loans for homebuyers who can't afford a 20% down payment, stand to benefit from looser capital requirements that give them the cash to expand just as the largest insurer,...
NPR  Apr 21  Comment 
The federal government controls Fannie and Freddie. But does it own it?
MarketWatch  Apr 17  Comment 
The regulator of federally backed mortgage giants Fannie Mae and Freddie Mac has mostly shelved a plan that would have increased the guarantee fees those firms charge lenders to buy their mortgages. The Federal Housing Finance Agency said...
Motley Fool  Apr 17  Comment 
Comments from one senator indicate nobody can agree about what to do with Fannie and Freddie.
Wall Street Journal  Apr 16  Comment 
The Federal Housing Finance Agency is set to direct Fannie Mae and Freddie Mac to reduce mortgage fees on some borrowers.
New York Times  Apr 15  Comment 
Fannie Mae and Freddie Mac, which back most home loans, will raise fees for other borrowers, like those who buy investment properties, to balance out the cost of the fee reduction.
Forbes  Apr 9  Comment 
 If Fannie and Freddie used new models, lending to Latinos and African Americans could grow a third without looser credit standards.




 

I suppose a priapicnl reduction program would be better than nothing, but there is always the risk of unintended consequences or even operational failure when attempting such a specific intervention. Why not let monetary policy do the work in a continuous, predictable, and agnostic fashion? It would deliver benefits not only to home owners, but also by reducing the real return on the many large cash-equivalent investments amassed by corporations like Apple ($60B last I checked), spurring them to put funds to more productive use. And of course, monetary policy can benefit from the Chuck Norris effect. Fiscal policy hasn't exactly inspired such reactions of late.

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