Weekly Standard: The Obamacare of Real Estate
- March 18, 2014
Top Senate Banking Committee members released plans this week to wind down mortgage giants Fannie Mae and Freddie Mac and replace them with a complicated apparatus disturbingly similar to Obamacare.
While the proposal by Senators Tim Johnson (D-SD), the chairman, and Mike Crapo (R-ID), the ranking member, was announced with great fanfare, it simply follows the outlines of another bipartisan bill, offered last year by Sens. Bob Corker (R-TN) and Mark Warner (D-VA). The idea is to get rid of the two government-sponsored enterprises (GSEs) that provide mortgage financing today for most American homes and replace them with a system of private lending with securities explicitly backed by the federal government.
– James Glassman