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In the first article of this series, I discussed the argument for turning Fannie Mae and Freddie Mac into public utilities, which would result in more Americans having fair access to mortgage services. However, regulating government-sponsored enterprises (GSEs) as public utilities is not without its detractors. Privatization is often presented as an alternative option, but as I mentioned in the previous article, it’s not always the ideal approach.
In June 2021, the Supreme Court of the United States ruled that President Joe Biden had the authority to oust the head of the Federal Housing Finance Agency (or FHFA), which oversees the government-sponsored enterprises (or GSEs) Fannie Mae and Freddie Mac. And within hours, he did just that, moving Trump-appointed Mark Calabria from the seat and instating Sandra Thompson in his stead.
How Lopping off the Wrong Loan Products to Trim the GSEs’ Market Reach Could Undermine Affordable Lending - Blog | Joint Center for Housing Studies of Harvard University.
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