Firmer Fannie and Freddie
05/19/2014 | | econ70, Economic forecasting, economist on radio, economist on TV, eisenberg and economics, Eisenberg and housing economics, Eisenberg and public speaking, Elliot eisenberg, funniest economist, funny housing economist, Graphsandlaughs, graphsandlaughs and eisenberg, housing sales, MLS, mortgage banking, Multiple listing service, politics and economics, Public speaking economist
Rather than waiting to pass housing finance reform, which is impossible, why not merge Fannie and Freddie in the meantime? Both firms do the same things — buy loans and securitize them — are regulated by the same agency, are in receivership, are undercapitalized, and are owned by the same entity, you and me! Merging them would result in reduced administrative and regulatory expenses and increase liquidity of the merged firms’ bonds.