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.
Writes 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.”