Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report

How to flip a house in Texas

Jan 21, 2020

Latest Episodes

Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report

A royal future?

Jan 20, 2020
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report

A plan to wind down Fannie and Freddie

Mitchell Hartman Mar 11, 2014
Share Now on:
HTML EMBED:
COPY

A plan to wind down Fannie and Freddie

Mitchell Hartman Mar 11, 2014
Share Now on:
HTML EMBED:
COPY

Leaders of the Senate Banking Committee unveiled a bipartisan plan on Tuesday that would wind down Fannie Mae and Freddie Mac, and replace them with a hybrid public-private mortgage-finance system. The government-sponsored enterprises were bailed out by taxpayers in 2008, at a cost of $187 billion as the housing market crashed. Fannie and Freddie guarantee mortgages and issue mortgage-backed securities, and back well over half of new mortgages right now.

The new plan would shut Fannie and Freddie down—presumably over several years—and create a new government entity just to guarantee mortgages. Private sector firms would bundle those mortgages into securities and market them to investors.

“There’s no question it would be a boom for large financial institutions,” said Guy Cecala, publisher of Inside Mortgage Finance. “Mostly banks that would take over that activity and, to some extent, that risk.”

The first 10 percent of losses from guaranteed mortgages would be absorbed by private financiers, not the government. That’s to protect taxpayers from another bailout.

But Cecala is skeptical: “Just like we couldn’t afford to let Fannie Mae and Freddie Mac fail, the question is, would we be able to allow large banks to fail, if they were propping up the mortgage market by issuing government-guaranteed mortgage securities?”

If you’re a member of your local public radio station, we thank you — because your support helps those stations keep programs like Marketplace on the air.  But for Marketplace to continue to grow, we need additional investment from those who care most about what we do: superfans like you.

Your donation — as little as $5 — helps us create more content that matters to you and your community, and to reach more people where they are – whether that’s radio, podcasts or online.

When you contribute directly to Marketplace, you become a partner in that mission: someone who understands that when we all get smarter, everybody wins.