Fannie Mae (FNMA)

[contrarian bull]

AEI has a different take: F&F hurt home-buyers.

Their argument is that making mortgages affordable encourages higher home prices - which prices many people out of the market.

Interesting reverse logic. Kind of bad for people who currently own a home, but you gotta hand it to them for trying a new tactic. All their charts don't really answer the question - will increased mortgage costs be fully offset by lower home prices?

And to be honest I doubt many politicians want to campaign on a record of causing their constituents' homes to drop in value.


http://www.aei.org/events/eliminating-fannie-mae-freddie-mac/