Let's compare FHFA to FDIC, the original "grand-daddy" of conservatorship.
FDIC was created by government to preserve the bank deposits of Mr. & Mrs. America in the post-1929 crash and a pervasive and debilitating rash of bank failures. FHFA was created to preserve affordable housing for Mr. & Mrs. America in the post-2007 crash and a pervasive and debilitating rash of mortgage failures. The origins share much good intent.
Both types of conservatorship were to preserve and conserve the assets of the little guys. Banks deposits. Real estate equity. So both FDIC and HERA share a noble ancestry in responsible laws enacted by Congress for the good of the many. Unfortunately, only FDIC, thus far, has fulfilled its mission successfully. Bank depositors have been protected. Pre-crisis real estate investors, unfortunately, have not fared so well... especially those at the lower end of the economic spectrum.
If no conservatorship was ever needed, then how come so many little guys lost everything and never recovered? If all was well, then the GSEs obviously were not structured as to look out for Mr. & Mrs. America, just the fat cats that profiteered from their lifelong labors and the largesse of their bailout dollars. All the benefit for federally chartered enterprises has gone to build post-2008 wealth STOLEN from the little guys that lost everything and had all of it given to the "establishment" in housing economics. You know. The ones that were there before the crisis, remain after the crisis and took all the equity from the homeowners who were foreclosed and short-sold into oblivion.
Where is Gretchen Morgenson? Where is George Will? Where are all the Pulitzer-driven egos and their exposes of a corrupt, failed system they seek to somehow resurrect and preserve? The government is trying to look out for the little guy, and the credentialed academics attack them for book revenues and remunerated articles?
Where is the outrage? Where is the proclamation of woes afflicting the low and middle class victims that NEVER recovered following the crisis? Well, maybe that does not matter to them,but it matters to me.
JMHO.
