EVENT: Eliminating Fannie Mae and Freddie Mac without legislation – AEI
Tuesday, February 27, 2018 | 9:00 am – 11:30 am
1789 Massachusetts Avenue NW
Washington, DC 20036
On Tuesday morning at AEI, seven housing experts rolled out their plan to eliminate the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac without legislation. This proposal counters the housing lobby’s view that a government guarantee is necessary for an effective housing finance system. The plan can be accomplished by administrative action alone. This is important since Congress has been unable to develop or agree on a workable housing finance system since the financial crisis nine and a half years ago.
This unique plan would create a safer and more stable housing market, take the taxpayer off the hook, and help the Treasury reduce the deficit by billions of dollars annually. The plan works by gradually winding down the GSEs through a reduction in the conforming loan limits, which are the maximum loan limits eligible for purchase by GSEs, and an elimination of other GSE products that do not promote home ownership.
*This event, featuring Norbert Michel, Director, Center for Data Analysis at The Heritage Foundation, can be viewed on the American Enterprise Institute website here or below.