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The GSE Public-Private Hybrid Model Flunks Again: This Time It’s the Federal Home Loan Bank System (Part 2)

The Stoop (NYU Furman Center)

Introduction The Federal Home Loan Bank (FHLB) System 1 is a relatively unknown but important part of America’s housing and financial system, with over $1 trillion in assets. Today, agency MBS outstanding is about $9 trillion, two-thirds of all first-lien mortgage dollars, while bank-held mortgage loans only account for $2.6

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Freddie Mac’s Second Mortgage Pilot: Should the Taxpayer Subsidize Equity Extraction Lending?

The Stoop (NYU Furman Center)

Introduction In April, the Federal Housing Finance Agency (FHFA) officially solicited public comment on a proposal from Freddie Mac, one of the two large government-sponsored enterprises (GSEs) it oversees, to begin a pilot program to finance closed-end second (CES) mortgages. It seems clear it would not.

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