Mark Riedy Discusses FHFA’s Loan-Balance Ruling
U-T San Diego -- Mark J. Riedy, Ph.D., is the executive director of the University of San Diego’s Burnham-Moores Center for Real Estate.
In turning down a Treasury proposal last week to allow Fannie Mae and Freddie Mac to reduce loan balances on some of the mortgages held as investments by those agencies, their federal regulator planted a flag declaring their rights to act independently and follow their best judgment. The Federal Housing Finance Agency, created in 2008 as the latest in a string of regulators for these agencies, faces strong criticism from the Treasury, Democrats in Congress and no doubt a host of private-sector groups. (Full Story)