Federal Conservatorships At Fannie, Freddie Achieved Short Term Goals

The imposition of federal conservatorships at Fannie Mae and Freddie Mac achieved key short term goals of stabilizing mortgage markets and promoting financial stability during a period of extreme stress, notes the Federal Reserve Bank of Atlanta. Scott Frame at Federal Reserve Bank of Atlanta, and Andreas Fuster, Joseph Tracy and James Vickery at Federal Reserve Bank of New York in their research note titled: “The Rescue of Fannie Mae and Freddie Mac,” however, note the conservatorships haven’t yet achieved the goal of reforming the residential mortgage finance system. Fannie, Freddie – Once shining examples of public-private partnerships Tracing the…