Reforming Fannie Mae and Freddie Mac: Hearing Before the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises of the Committee on Financial Services, U.S. House of Representatives, One Hundred Seventh Congress, First Session, July 11, 2001 |
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activities affordable housing African-Americans American ARM share banks basis points believe benefits to consumers BENTSEN bill billion borrowers callable debt Capital Markets CARNELL CBO report CBO study CBO's Chairman BAKER charter Committee concerns conforming loan conforming mortgage Congress Congressional charter cost DELK depositories dollar economy effect of Freddie estimate families Fannie and Freddie Fannie Mae FHLB FHLBanks financial institutions Financial Services FM Watch Freddie Mac funding advantage Government Sponsored Enterprises hearing HINOJOSA Hispanics homebuyers homeowners homeownership rate housing finance system housing goals housing GSEs HOWARD income interest rates investors issue jumbo loans jumbo-conforming spread Kanjorski legislation long-term debt low-income lower Mac and Fannie Mac's Mae and Freddie Mae's methodology Miller minority mortgage rates OFHEO opportunity oversight Pearce percent question regulator regulatory structure risk risk-based capital safety and soundness Secondary Mortgage Market sector securities short-term debt statement subsidy taxpayers Thank too-big-to-fail Treasury
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Page 119 - The Effects of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation on Conventional Fixed-Rate Mortgage Yields.
Page 166 - ENTERPRISES of the COMMITTEE ON BANKING AND FINANCIAL SERVICES of the US HOUSE OF REPRESENTATIVES...
Page 139 - ... are not guaranteed by the United States and do not constitute a debt or obligation of the United States or of any agency or instrumentality thereof other than the corporation.
Page 166 - Agreement. (b) The policies and positions of the United States in the Border Environment Cooperation Commission shall be coordinated through applicable interagency procedures, which shall include participation by the Department of State, the Department of the Treasury, the Department of Housing and Urban Development, the Department of the Interior, the Agency for International Development, the Environmental Protection Agency, and, as appropriate, other Federal agencies.
Page 185 - Mae's federal sponsorship would lead to a loss of allocative efficiency, not a gain.26 The loss would be greater the larger is the funding advantage of depositories relative to Freddie Mac and Fannie Mae. We next consider what the magnitude of the funding advantage, given deposit insurance, might be for the depositories. This result depends on the relative elasticities of the demand and supply curves. See Capital Economics (2000) for the full discussion. Cost of Funds Comparisons The...
Page 85 - I ask unanimous consent that my full statement be included in the Record. Mr.
Page 183 - CBO report. Use of a weighted average of spreads on callable and noncallable debt accounts for some of the inflation in the CBO estimate. We understand that CBO may not incorporate callable spreads into its analysis in the forthcoming report, and if this is true the change will move the CBO estimate closer to the alternative estimates.
Page 185 - Second Best Solution Some critics of Freddie Mac and Fannie Mae contend that their federal sponsorship distorts resource allocation in that credit is diverted into residential real estate from other uses that, at the margin, have higher values. It is not our purpose here to address the desirability of promoting the financing of housing. Rather, we simply note that this argument fails to take into account the distortions introduced by federal deposit insurance.25 Exhibit 12 presents an analysis of...
Page 165 - second best" strncture for a housing finance system assuming that the "first best" system would have no government involvement at all. This is because Freddie Mac and Fannie Mae supply housing finance more efficiently than could the depositories alone. Banks and thrifts receive federal support in the form of deposit insurance, access to Federal Reserve Bank liquidity, and Federal Home Loan Bank advances and as a result they have an average cost of funds lower than Freddie Mac and Fannie Mae. In summary,...