Inside Mortgage Finance Poll 

Two major GSE reform bills have surfaced on Capitol Hill this summer. Both call for closing down Fannie Mae and Freddie Mac in relatively short order. But only one proposes a replacement entity that would continue to provide a government guarantee on conventional mortgages that are securitized. What do you think? 

It’s a good idea to replace Fannie Mae and Freddie Mac with some sort of government MBS program that provides catastrophic insurance coverage. 

Fannie Mae and Freddie Mac should be dissolved but not replaced with any new government program. The private sector can fill any gap in mortgage financing. 

It’s a big mistake to eliminate Fannie Mae and Freddie Mac given their current importance to the mortgage market as well as the fact that they are paying billions of dollars to the Treasury. 

What should be done to “reform” Fannie Mae’s and Freddie Mac’s position in the mortgage market? 

Wind the two GSEs down as quickly as possible while setting up some new government guarantee program for conservatively underwritten conventional mortgages.

Let the two GSEs continue to funnel money to the Treasury while developing a plan to take them out of conservatorship as private companies. 

Do nothing since the housing market is too dependent on the two GSEs and Congress is unlikely to agree on a major change in the status quo anytime soon. 

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