Douglas Holtz-Eakin itemized some of the other SIFI-like characteristics of Fannie and Freddie: “They have enormous leverage. I have no idea what the right number is, but it’s beyond any reasonable measure of leverage. And they’re heavily interconnected.”

Although similar to Fannie’s HomeStyle loans, CHOICERenovation is novel in that it can also be used to renovate and repair properties damaged in a natural disaster, or to fund renovations, such as flood barriers or retaining walls, that might help prevent damage from a natural disaster.