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The GSE Public-Private Hybrid Model Flunks Again: This Time It’s the Federal Home Loan Bank System (Part 1)

The Stoop (NYU Furman Center)

They didn’t have competition in the conventional sense, but mainly competed in a limited manner with other government units, such as the Federal Housing Administration and the Department of Veterans Affairs, and to a certain degree with banks and institutional investors. It well reflects how much F&F are a hybrid of the two.

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Government Mortgage Interest Rates: A Serious Discussion about the Intertwined Topics of Risk Adjustment and Cross-subsidies

The Stoop (NYU Furman Center)

The FHFA, meanwhile, has stated that there is no intention to do such redistribution and that the changes resulted instead from updating the GSE risk adjustments, mostly set about a decade ago, to be consistent with the rule it adopted in 2020 for minimum required capital. This claim is simply untrue.