There has been much discussion around the future of the GSEs. There are three models being floated around: a hybrid market with some GSE involvement; the GSEs becoming full federal agencies; or the privatization of the markets without any GSE involvement. However, there has been little focus on how a new infrastructure for housing finance will be built.

According to Laurie Goodman, senior managing director at Amherst Securities Group, creating and implementing an alternative to the current system will further restrict credit availability in the middle of a housing crisis. Goodman spoke at an American Enterprise Institute panel discussing the future of Fannie Mae and Freddie Mac. It is important to understand how important the government-supported agencies have been to the mortgage system.

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