Though the eventual dismantlement of Fannie Mae and Freddie Mac may seem a foregone conclusion to lawmakers, the two government-sponsored enterprises have proven their worth during the housing crisis and should continue to undergird the housing market, argues New York Times business columnist Joe Nocera.
“Does housing finance need reform? Yes. Do we need private capital to return? Of course. But the easiest and most sensible reforms would take advantage of what we already have — two companies that know how to handle credit risk — instead of trying something new and untested, purely because Fannie and Freddie are political poison.
In the meantime, we should be thanking Fannie and Freddie, instead of tearing them down.”