Congressional action to reform housing finance is ultimately needed, but we must confront the risk of continued drift and inaction if Congress is unable to act.
The Mortgage Bankers Association released a detailed transition plan Thursday designed to help policymakers turn the government-sponsored enterprises into private guarantors of mortgage-backed securities.
Suspending Fannie Mae and Freddie Mac's regular dividend payments to the Treasury, thus enabling the companies to replenish their reserve capital, would put their future on better footing.
