In the News News from NAMB: January 4, 2018
From the National Mortgage Professional Magazine:
Fannie/Freddie Reform Where No One LosesNo one wants to lose in the Fannie Mae/Freddie Mac restructure scenario. Under a plan roughly proposed by Alex Pollock of the R Street Institute, everyone, from the government to common shareholders to borrowers would win. Pollack points out that the government has just reached its return of capital invested plus a 10% return, the original deal. They would continue to get huge returns on the 79% ownership interest they would still have. Common stock owners would get 20% equity. Borrowers would get low rates with a continued government guarantee. Taxpayers would be protected with an FDIC-type fund paid into by the GSEs. This is the first plan I’ve seen where everyone wins.
