GSE Takeover Expected to Boost Liquidity, But Big Changes May Lie Ahead for Mortgage Securitization
September 12, 2008
The Bush administration’s takeover of Fannie Mae and Freddie Mac is expected to boost liquidity in the agency MBS market and lower mortgage rates, but it also sets the stage for a major re-calibration of the government’s approach to mortgage securitization in the years ahead. Under new conservatorships run by the Treasury Department and the Federal Housing Finance Agency, Fannie...