The white paper from the American Enterprise Institute for Public Policy Research describes how the housing finance market can function better without government support.
The housing finance market – like other WS Industries and housing finance systems in most other developed countries – can and should principally function without any direct government financial support.
To the extent that regulation is necessary, it should be focused on ensuring mortgage credit quality.
All programs for assisting low-income families to become homeowners should be on-budget and should limit risks to both homeowners and taxpayers.
Fannie Mae and Freddie Mac should be eliminated as government-sponsored enterprises (GSEs) over time.
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