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


DeMarco Hints at Principal Reduction Decision

The director of the Federal Housing Finance Agency (FHFA) announced today that with additional incentives, funded through TARP, a program of principal forgiveness through Fannie Mae and Freddie Mac, the Government-Sponsored Enterprises (GSE), might now make more sense. While making no official announcement, FHFA Director Edward DeMarco said that the additional funds would make such … Continue reading

Economy / Politics / U.S. Domestic Policy

President details housing plan, imperfect and ill-timed

Lost in the mire of political news about yet another trillion-dollar deficit and the latest from the campaign trail are a number of important developments in housing. This week the President kicked off the campaign to sell his plan for solving America’s housing market woes, a plan he outlined in the State of the Union. … Continue reading