Recapitalizing Fannie, Freddie Would Take 20 Yrs: Treasury

Private shareholders of Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) have been encouraged by the failure of the Crapo-Johnson proposal to gain traction, but according to Treasury Under Secretary Mary Miller their demand for the recapitalization of the GSEs simply isn’t realistic.

Fannie, Freddie reform critics avoiding difficult decisions, says Miller

“Critics of reform would suggest that we can simply recapitalize the GSEs and avoid difficult decisions around creating a new system,” said...