Reforming U.S. Government Housing Policy?

Time to Stop Taking Non-Serious Fannie Mae Reform Plans Seriously by Investors
Unite - Pub. valuewalk.com – March 23, 2018, at: https://www.valuewalk.com/2018/03/time-
to-stop-taking-non-serious-fannie-mae-reform-plans-seriously/
A refresher:
Fannie Mae and Freddie Mac by Joe Light – pub. Bloomberg.com/quicktake - Updated on
February 20, 2018, at: https://www.bloomberg.com/quicktake/fannie-mae-and-freddie-mac-
irbtxzdk
An excerpt from the refresher:
The companies helped the market for mortgage-backed securities grow by guaranteeing
the payments of bonds it sold — bonds that many investors treated as nearly as safe as
those of the U.S. Treasury, because of what was seen as an implicit government
guarantee. That meant the companies could borrow more cheaply than other lenders.
Some conservative economists say their collapse was caused by
Congressional requirements to back lending in poor areas. But most studies have pointed
to their small capital reserves and decision to expand their investments in loans
packaged by Wall Street during the housing boom, including subprime bonds. Fannie
and Freddie now stand behind about half of new U.S. mortgages, compared with about a
third in 2005.
A transcript of a speech delivered by Jamie S. Gorelick, Vice-Chair, Fannie Mae, to the
American Bankers Association at the National Community & Economic Development
Conference - Chicago, IL - October 30, 2000 at:
https://fcic-static.law.stanford.edu/cdn_media/fcic-docs/2000-10-30%20Jamie%20Gorelick
%20Remarks.pdf

Andrew Cuomo Fannie and Freddie How Andrew Cuomo Gave Birth to the Crisis at
Fannie and Freddie by Wayne Barrett – pub. villagevoice.com – August 5, 2008, at:
https://www.villagevoice.com/2008/08/05/andrew-cuomo-and-fannie-and-freddie/
Notes: Andrew Cuomo was Bill Clinton’s second Director at Housing and Urban Development
(HUD). Clinton’s first HUD director was Henry Cisneros. Later (and up-until Angelo Mozilo
admitted that Countrywide Financial had serious financial problems - insolvent) Henry Cisneros
served on the board of Directors of Countrywide Financial. Cisneros’ service on Countrywide
Financial’s board of directors was contemporaneous with Kathleen Brown’s service on that
board of directors. Kathleen Brown is the sister of then Attorney General of California, now
Governor of California, Jerry Brown. Shortly after Kathleen Brown and Henry Cisneros resigned
from Countrywide’s B.O.D. Attorney General Jerry Brown filed a lawsuit against Countrywide
Financial.
The Community Reinvestment Act begets Bill Clinton’s Affordable Housing Initiative, at:
http://www.businessinsider.com/the-cra-debate-a-users-guide-2009-6

Reforming U.S. Government Housing Policy? A One Pager

By Bill George - published on scribd.com 3/25/2018