New CRL Report: Why GSEs Should be Treated as Return-Regulated Utilities if they Exit Conservatorship
WASHINGTON, D.C. – Today, the Center for Responsible Lending (CRL) released Treat Fannie and Freddie as Utilities, a report finding that the best model for regulating Fannie Mae and Freddie Mac (the government-sponsored enterprises, or GSEs) outside of conservatorship is utility rate-of-return regulation. Under this type of regulation, the GSEs would pool risk nationally and offer broad access to affordable mortgage credit nationwide. The report recommends that the Federal Housing Finance Agency (FHFA), the independent agency regulating Fannie and Freddie since the 2008 financial crisis