Bob Corker’s “Jump Start GSE Reform” Will Only Prolong the Conservatorship of Fannie Mae and Freddie Mac

Bob Corker’s “Jump Start GSE Reform” Will Only Prolong the Conservatorship of Fannie Mae and Freddie Mac

Today’s Washington Post editorial “A New Housing Finance System” threw support behind legislation being championed by Senator Bob Corker (R-TN) that would prevent Treasury from selling any of its preferred equity in Fannie Mae and Freddie Mac without Congressional approval.  Ironically, putting the title of the editorial aside, there was very little in this piece which actually discussed a new housing finance system, and the editorial even admitted that Corker’s bill wouldn’t create one.

In fact, Corker’s legislation would do nothing to hasten GSE reform but would bog it down even more.  Congress has done nothing to address the conservatorships in the seven years...