Their argument has been that Fannie and Freddie are taking business away from private banking. They have claimed that the "implicit" government guarantee against default of the GSEs has given them a profit edge. But without Fannie and Freddie, there would be no viable housing market.
Ed DeMarco's continued ideological opposition to principal reduction -- also known as resetting mortgages to fair market value -- has made him widely known one of the biggest obstacles to our country's economic progress.
The FHFA's decision preserves unfair practices in the mortgage servicing and insurance industries. It means the new approach and lower rates will not be implemented and therefore the status quo will continue.
For my New Year's resolution, I want to understand the banks. I have a scientific curiosity about how these banks work. The only way I can think of to truly understand the banks is to dissect one of them.