annie Mae and Freddie Mac are in play and with them the financial heart of the real estate marketplace. As they evolve – if they evolve – transactions worth trillions of dollars are at stake as well as bil- lions of dollars in potential profits. The battle for Fannie Mae and Freddie Mac — so-called govern- ment-sponsored enterprises or GSEs — involves two hugely prof- itable companies and what will become of them. They were open and functioning even during the worst moments of the mortgage meltdown. And yet, somehow, they are still in government hands after more than a decade as a federal conservatorship. The trillion-dollar question is what’s next for Fannie Mae, Freddie Mac, and the mortgage marketplace? The Government Accountability Office has identified at least 14 GSE reform plans introduced on Capi- F The Trillion Dollar Question GSE REFORM: A HOUSING FINANCE SAVIOR OR A LOOMING DISASTER? by Peter G. Miller

34 | think realty housing news report :: june / july 2019

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