Geithner’s Testimony to Congress on Fannie and Freddie

by Marilou Moursund on March 24, 2010

in Credit Crisis,Debt,Residential Real Estate

Calculated Risk has a good summary of Secretary Geithner’s prepared testimony to Congress on reforming Fannie Mae and Freddie Mac.  One of the primary goals is to remove the opportunity for asymmetric risk taking that has characterized much of the current financial crisis.  The main objectives of mortgage finance reform include widely available credit with appropriate underwriting standards, affordable housing, consumer protection, and financial stability.

I like a lot of what I see in this new regulatory framework for the mortgage finance industry.  I haven’t made it all the way through the actual testimony, so I hope that the FHA is included in this reform.  Much of the bad paper that used to be in Fannie and Freddie was quietly transferred to the FHA over the past fifteen months.

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