HUD’s Latest Proposal Brings Moral Hazard into Rental Housing
Debt / Economy / Politics

HUD’s Latest Proposal Brings Moral Hazard into Rental Housing

The 2008 Financial crisis was a costly lesson in the dangers that come with subsidizing risk. Fannie Mae and Freddie Mac are well recognized as the principal creators of moral hazard by reimbursing investors that held mortgage-backed securities when homeowners failed to make payments on their mortgages. Yet only five years after the worst of … Continue reading