F&F Fix

Here’s how to shrink/fix Fannie and Freddie. First, reduce the threshold for a conforming loan to 1.5 times the median price of an existing single-family home, which is currently $284,000. Second, end support for vacation homes and cash-out refi. Third, start treating F&F like banks when it comes to disclosure rules, capital requirements, etc. This will make mortgages more expensive and harder to get; which makes meaningful reform eternally unpopular.