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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)

It is considered one of America’s government- sponsored enterprises (GSEs), i.e., public-private hybrid corporations created by Congress and authorized to engage only in a narrowly-tailored set of activities. 6 This was totally inconsistent with the original design. 6 This was totally inconsistent with the original design.

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

The Stoop (NYU Furman Center)

On the other hand, they are required to undertake a public policy mission that does not generate such a return, leading to Congress also awarding them subsidies to ideally even it all out. Although that justification appears nowhere in the legislation creating the GSEs, it is quite broadly accepted by a wide range of policymakers.

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