Does Profit Motive Compromise Fannie’s and Freddie’s Commitment to Affordable Housing?
April 23, 2004
A top Treasury official caused a stir this week by claiming that Fannie Mae and Freddie Mac might be motivated to keep mortgage rates high in order to generate earnings on their hefty investment portfolios. In a speech at the Mortgage Bankers Association’s National Secondary Market Conference, Wayne Abernathy, assistant secretary for financial institutions at the Department of Treasury, said the two government-sponsored enterprises
The creation of a U.S. sovereign wealth fund could grease the skids for an end to the conservatorships of Fannie Mae and Freddie Mac.
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