Click Cover to Read Digital Edition

AVAILABLE IN THE APP STORE
iPAD APP
iPHONE APP

UPCOMING EVENTS

 
ICBA National Convention
March 1-5
Gaylord Palms Resort
Orlando
 
ABA Mutual Community Bank Conference
March 22 & 23
Marriott Marquis
Washington, D.C.
 
Card Forum & Expo
April 8-10
Marriott
Chicago
More events >  

<- Back

Share |

Print Friendly and PDF

FHFA: Fannie and Freddie Of Little Value Without Government Guarantees

 

May 6 - The Federal Housing Finance Agency has released reports prepared by Fannie Mae and Freddie Mac on their multifamily businesses. The reports were conducted at the direction of FHFA pursuant to its goal of contracting Fannie Mae and Freddie Macís overall market footprint and generating potential value for taxpayers. As part of the 2012 Conservatorship Scorecard, the enterprises were directed to analyze the viability of their multifamily businesses absent a government guarantee and review the likelihood of these models operating on a stand-alone basis after attracting private capital and making any adjustments for pricing if needed.

The reports conclude that without government guarantees, the multifamily businesses of Fannie Mae and Freddie Mac have little inherent value. The reports further conclude that the sale of these businesses would return little or no value to the U.S. Treasury and to taxpayers.

The reports also highlight the fundamental tensions inherent in the government sponsored enterprise model that policymakers will have to consider as part of housing finance reform.

Click here for more information.


Back