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Volume 6 - Number 13

June 20, 2007

GSE Nonprime MBS Up Among Top Issuers

In the wake of the much-publicized pledges by Fannie Mae and Freddie Mac to help out subprime borrowers, a review of the latest data provides a somewhat conflicted story. The two GSEs have increased their purchases of subprime and... [Includes one chart]

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Poll

What should be done to “reform” Fannie Mae’s and Freddie Mac’s position in the mortgage market?

Wind the two GSEs down as quickly as possible while setting up some new government guarantee program for conservatively underwritten conventional mortgages.
Let the two GSEs continue to funnel money to the Treasury while developing a plan to take them out of conservatorship as private companies.
Do nothing since the housing market is too dependent on the two GSEs and Congress is unlikely to agree on a major change in the status quo anytime soon.

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