Rising drumbeat for Trump to deal with Fannie and Freddie himself
by Joseph Lawler | Feb 23, 2018, 12:01 AM Key interest groups are hoping that the Trump administration will overhaul bailed-out government-sponsored enterprises Fannie Mae and Freddie Mac itself and that the current congressional effort to find a compromise on bipartisan legislation will fail.
This week, managers at the giant investment firm PIMCO wrote that the current system of housing finance “has been and continues to be immensely successful, not to mention wildly profitable, and the current system works.â€
PIMCO is a major investor in the mortgage-backed securities that Fannie and Freddie bundle. The two don’t make mortgages, but they buy them from banks and other lenders and package them into the securities for sale to investors, complete with a guarantee. They have continued to provide that service while in the government’s custody since 2008, and PIMCO suggested that the best path for them would be to continue doing so as official government-run companies.
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http://www.washingtonexaminer.com/rising-drumbeat-for-trump-to-deal-with-fannie-and-freddie-himself/article/2649809
