Killing Fannie, Freddie kills the 30-year mortgage

GSEs offer irreplaceable skills

Fannie Mae and Freddie Mac ensure two skills: underwriting and a highly skilled hedging operation that could maneuver adeptly as interest rates changed. If this is taken away and the government backs leaves, no system of private capital is going to continue making 30-year mortgage loans, at least that is what Joe Nocera argued in a column with The New York Times. 

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3d rendering of a row of luxury townhouses along a street

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