Moody’s Put Case for Demise of Fannie and Freddie

Moody’s Analytics target Fannie Mae and Freddie Mac in a report advocating for changes in the US home loans market

Moody’s Analytics

Here are details from a WSJ article – quote – Mortgage rates could be one percentage point higher and house prices 10% lower if the U.S. mortgage market were fully privatized, according to a paper to be released Tuesday by Mark Zandi, chief economist at Moody’s Analytics.

The calculations help build Mr. Zandi’s case for replacing Fannie Mae and Freddie Mac with new entities constituting a public-private hybrid system for financing home loans.

The proposal is the latest in a growing list of white papers by economists and academics looking to influence the debate over how to reinvent the nation’s mortgage market.

Any changes are welcome in the US home loans market and this contribution for changes by Moody’s Analytics will hopefully have some influence on changes that are needed yesterday – such is the importance of the home loans dilemma!

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