It’s reported that an overhaul of mortgage giants Fannie Mae and Freddie Mac may be in the works. The Obama administration’s plan would be to strip them of billions in troubled loans and build a new structure to support the home-loan market. Robert Bench, a former deputy Controller of the Currency, now a senior fellow at the School of Law’s Morin Center for Banking and Financial Law, thinks a Freddie/Fannie remake is smart.
“For most of their existence, Fannie and Freddie were utilities that served the public well. If they can return to a ‘utility’ culture, deploying conservative lending standards for the benefit of the overall mortgage market, they would accelerate reform and repair of retail mortgage conditions.”
Contact Robert Bench, 617-353-5428, firstname.lastname@example.org