The former regulator of Fannie Mae and Freddie Mac said nationalizing the troubled GSEs is a bad idea, declaring that all government insurance programs are slated to fail.

Speaking at ASR's sister publication National Mortgage News conference on distressed assets, James Lockhart said the "right answer" to the Fannie/Freddie conundrum is to privatize the two, but admitted accomplishing such a task is near impossible right now since the government controls nearly 100% of the residential market and 80% of the multifamily sector.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.