- While Washington is finally seriously thinking about how to replace Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB), as on many other issues, Republicans and Democrats are deeply divided about what to do.
- Superficially, the argument is about the role of government in the mortgage market, writes the WSJ's Nick Timiraos, but the real question is whether Americans should have "relatively easy access to the pre-payable, 30-year, fixed-rate mortgage?"
- One problem with scrapping Fannie and Freddie is that they - with a government guarantee - back $4.5T of almost $10T in outstanding mortgage debt. Any replacements would have to absorb trillions of dollars of credit and interest-rate risk.
Not so easy to replace Fannie and Freddie
Sep 23 2013, 08:30 ET