The CBO Takes On Fannie Mae, Freddie Mac Reform

The Congressional Budget Office (CBO) has released a report analyzing the expected costs and consequences of the main alternatives to Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC). A lot of its conclusions are straightforward, less government involvement in the secondary mortgage market probably means higher interest rates on home loans, but the CBO disputes the worst-case scenarios put out by some advocates of returning to private GSEs. “Under any of the transitions that CBO examined, the agency expects that most borrowers would still be able to take…