Mortgage Securitization in the Covid-19 Era: Commentary (Levi)

To effectively address the scale and complexity of the nation's affordable housing needs, Fannie Mae and Freddie Mac must be empowered to fully leverage their market position and public mission. This requires ending the conservatorship and excessive capital requirements that make mortgage credit less affordable, and transitioning to a utility model that lowers the cost of capital and allows the Enterprises to dedicate more profits toward serving low- and moderate-income borrowers and communities. With the right framework, the Enterprises can drive solutions through targeted loan programs, research, capacity building, and partnerships – all critical pieces of a multiprong national strategy to expand access to affordable, sustainable homeownership.