Fannie, Freddie conservatorship hurts investors, destabilizes mortgage market
Housing Wire - July 7, 2014 - July 7, 2014
July 07, 2014, By Trey Garrison
In the pages of the Wall Street Journal on Sunday, the former head of the Federal Deposit Insurance Corp., William Isaac, takes the government to task on its virtual third-world, banana republic treatment of GSE investors.
The FHFA as conservator is a fiduciary—or trustee—for the shareholders of Fannie and Freddie. Its job is to, as the law says, “conserve [the enterprises’] assets and property” for shareholders while Fannie and Freddie rebuild their capital base and eventually exit the conservatorship.