Affordable Housing

GSEs Should Be Directly on Treasury’s Books: CBO 

For all of the press the Treasury/Federal Housing Finance Agency bailout of Fannie Mae [stock FNM][/stock] and Freddie Mac [stock FRE][/stock] has received, it’s the nuances that are now starting to come into clearer view that will determine the future course of mortgage lending in the United States. The Congressional Budget Office opened up the latest can of worms on Tuesday by suggesting that the Treasury needs to take the full operations of each GSE directly onto its balance sheet.