6 days ago
Fannie, Freddie Need Rules to Avoid ‘Race to the Bottom,' NHC Says
Privatizing Fannie Mae and Freddie Mac risks a return to the kind of perilous mortgages that helped cause the global financial crisis unless regulatory safeguards are kept in place, an affordable housing nonprofit said in a paper on Tuesday.
'This is essential to averting the 'race to the bottom' that ultimately drove down credit standards during the run-up' to 2008, according to the paper by the National Housing Conference, a copy of which was seen by Bloomberg News.
