11.7.19
Plans to end the government’s control of Fannie Mae and Freddie Mac will most likely be stalled due to the complex nature of the process and possible ramifications it will bring, according to Andrew Hsu, portfolio manager at DoubleLine Capital. Hsu says that while ceasing government support of Fannie and Freddie will help the government, it will hurt the economy and the mortgage market – especially affecting millennials trying to buy a home for the first time. “Ending the conservatorship and essentially shifting some of these practices away into private markets potentially creates frictional costs, and these frictional costs will be passed on to the borrower,” said Hsu.
Read more via Reuters.