Is Mel Watt Setting up Another Bailout?
By Norbert Michel, Director, Center for Data Analysis at The Heritage Foundation.
On Wednesday, Mel Watt, the director of the Federal Housing Finance Agency (FHFA), will testify in a Senate hearing titled “Ten Years of Conservatorship: The Status of the Housing Finance System.”
Given that Fannie Mae’s and Freddie Mac’s spectacular failure led to the 2008 financial crisis, it might seem odd that these government-sponsored enterprises (GSEs) remain in government conservatorship. Yet Congress has done nothing substantive on housing finance reform in almost a full decade.
If anything, the status of the housing finance system is more dangerous now because Fannie Mae and Freddie Mac have become even more entrenched.
This commentary originally appeared in Forbes.