Roberto G. Quercia, director of the Center for Community Capital in UNC’s College of Arts and Sciences, says regulators and policymakers should avoid making premature long-term decisions about the structure of Fannie Mae and Freddie Mac in the aftermath of the federal government’s decision to take them into conservatorship.
With market confidence restored by the government takeover, policymakers now must turn their focus to American homeowners, who rely on the two largest mortgage buyers in the world, he said.
“So far, the government’s actions have concentrated on bondholders, shareholders and taxpayers, which is important,” said Quercia, a professor of city and regional planning. “But a solution to the current crisis will not be possible until we deal with homeowners and the growing stock of foreclosures. Long-term, investors will be better off if we keep people in their homes.”
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