Being a champion of homeownership or affordable housing options is not risky policy, it is essential to growing wealth. Unfortunately, as pointed out by many civil rights organizations, there are provisions of the Johnson-Crapo discussion draft that will only exacerbate the current disparities in homeownership rates.
At the moment, it seems Fannie Mae and Freddie Mac are doing their job just fine. They are issuing mortgage-backed securities (MBS) that include more than 60 percent of new mortgages. Interest rates on mortgages are low and both companies are making substantial profits that are refunded to the government. Why is there any need to overhaul this system? The financial industry is of course unhappy with this situation. It sees the money being earned by Fannie Mae and Freddie Mac as money that could be going into its pockets. Of course, there is nothing that prevents Goldman Sachs, Citigroup, and the rest from going out and issuing their own MBS right now. The problem is that they have a really awful track record. Remember the financial crisis? And of course it is especially hard for them to compete with two relatively efficient government-run issuers like Fannie and Freddie.