Congratulations, taxpayers, you’re getting a new house — whether you want it or not. When it comes to the American real estate market, after all, extensive government involvement (Fannie Mae and Freddie Mac back about 60 percent of new mortgages) means we’re all co-signing on our fellow citizens’ loans. And if the new head of the Federal Housing Finance Agency (Fannie and Freddie’s regulator) has his druthers, it’s going to stay that way.
In a recent speech at the Brookings Institution, former North Carolina congressman Mel Watt, who took over the reins of the FHFA earlier this year, signaled an alarming about-face in the agency’s priorities. Breaking with his predecessor, Edward DeMarco, Watt Login to read more