Secondary Mortgage Markets and Federal Housing Policy

:The government sponsored secondary mortgage markets (Fannie Mae and Freddie Mac) are crucial infrastructure links in the housing finance system. This paper examines the evolution of the policy debate about the public purpose of the enterprises. It focuses on three recent reform efforts: the need to redress discrimination in access to credit, the need to resolve the credit crunch for multifamily housing, and the need to ensure financial safety and soundness. Recent changes in corporate strategy and reforms enacted in Title XIII of the 1992 Housing and Community Development Act are assessed in the context of these three issues and conclusions are drawn about the implications this restructuring will have for the public / private basis of US housing policy.