Research and Commentary
Douglas W. Elmendorf, September 08, 2008
The Fannie Mae and Freddie Mac Rescue Plan
Douglas Elmendorf offers his views on the federal government's plan, announced on September 7, to take control of troubled mortgage lenders Fannie Mae and Freddie Mac. He says "it ensures that the government has full control over the enterprises so that long-run decisions about our system of housing finance can be made in the best interest of society as a whole."
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Mortgage Market, Housing, Financial Institutions, U.S. Economy, U.S. Department of Housing and Urban Development
VIDEO
Alice M. Rivlin, September 08, 2008
The Treasury Department’s decision to place Fannie Mae and Freddie Mac in a conservatorship could signal a turning point in the credit crisis that has troubled investment banks for nearly a year. Brookings fellow and former OMB Deputy Director Alice Rivlin examines the impact and the importance of the action.
RESEARCH AND COMMENTARY
Alice M. Rivlin, July 18, 2008, Politico
Recent government efforts to shore up Fannie Mae and Freddie Mac reveal the ambivalence of Americans towards whether these mortgage giants should be more like private corporations or public utilities. Alice Rivlin suggests that, if taxpayers put credit on the line and take the risk of losing, they should also be allowed to share in the gains. She suggests at least partial government ownership and public appointees to the Board. Read More
RESEARCH AND COMMENTARY
Frank S. Alexander, October 28, 2008, The Brookings Institution
A new Blueprint paper argues that the rising number of vacant and abandoned properties around the nation requires a more robust drive by the federal government to aid states and localities in land banking. The author, Frank Alexander of Emory University, recommends that federal policy should better capitalize local and regional land banking (the process or policy by which local governments acquire surplus properties and convert them to productive use), encourage code reform and regional collaboration. Read More
VIDEO
Barry P. Bosworth, October 14, 2008
The federal government’s decision to take equity stakes in private banks to help shore up the battered economy is a step in the right direction, Barry Bosworth says, and he adds that more needs to be done – particularly on the housing front.
RESEARCH AND COMMENTARY
Martin Neil Baily and Robert E. Litan, October 10, 2008, The Brookings Institution
With fears of a global recession pounding markets worldwide, many are watching closely to see if the U.S. Treasury can quickly implement the recent bailout package in a way that stabilizes the financial markets and unfreezes credit. Brookings experts Martin Baily and Robert Litan take a look at the Treasury Department’s chances of success and argue that the omens thus far are “not encouraging." Read More
RESEARCH AND COMMENTARY
Martin Neil Baily, October 06, 2008, The Brookings Institution
As part of our ongoing series covering the financial crisis, Martin Baily, director of IBPP delivered a presentation at the NABE Meeting on October 6, 2008 on the cause of the current financial crisis and the domino effect that permeated the financial markets, and provided measures to be implemented to prevent another financial institution meltdown. Read More
RESEARCH AND COMMENTARY
Edgar O. Olsen, September 2008, Hamilton Project Discussion Paper
In this paper, Edgar Olsen argues that the two most serious structural shortcomings of the current system of low-income housing assistance are (1) its excessive reliance on unit-based assistance and (2) its failure to provide housing assistance to all of the poorest eligible families who ask for help. Read More
RESEARCH AND COMMENTARY
Michael S. Barr, Sendhil Mullainathan and Eldar Shafir, September 2008, Hamilton Project Discussion Paper
The causes of the mortgage meltdown are myriad and the solutions likely to be multifaceted, but a central problem that led to the crisis was that brokers and lenders offered loans that looked much less expensive and much less risky than they really were. In this paper, Michael Barr, Sendhil Mullainathan and Eldar Shafir propose a sticky opt-out mortgage system, under which lenders would be required to offer borrowers loans with standard terms. Read More
RESEARCH AND COMMENTARY
Andrew Caplin, Noël B. Cunningham, Mitchell Engler and Frederick Pollock, September 2008, Hamilton Project Discussion Paper
If current trends continue, today’s default crisis will soon be followed by an affordability crisis as an ever-increasing number of American households find themselves locked out of credit and unable to transition to homeownership. In this paper, Andrew Caplin, Nöel Cunningham, Mitchell Engler and Frederick Pollock argue that development of shared appreciation mortgage (SAM) markets would moderate the impending decline in homeownership and lower the risk of future housing crashes. Read More
PAST EVENT
Tuesday, September 23, 2008
8:45 AM to 12:00 PM
Washington, DC
Turmoil in the U.S. housing and financial markets continues, as evidenced by the recently announced rescue plan for mortgage giants Fannie Mae and Freddie Mac and the latest financial turmoil involving Lehman Brothers, Merrill Lynch and AIG. On September 23, The Hamilton Project released three new discussion papers and hosted a three-panel policy discussion on various aspects of the housing and credit markets. Read More
RESEARCH AND COMMENTARY
Martin Neil Baily and Robert E. Litan, September 22, 2008, The Brookings Institution
Martin Baily and Robert Litan analyze the long-term implications of recent and proposed government efforts to stabilize the markets and the economy at large. As Congress considers legislation this week, Baily and Litan stress the importance of understanding how and why the dominoes fell, and most important, they advocate important systemic fixes: transparency, institutional liquidity and better oversight and tools given to regulators. Read More
RESEARCH AND COMMENTARY
Robert E. Litan, September 17, 2008, The Brookings Institution
In the wake of the federal bailouts of Bear Stearns, Fannie Mae, Freddie Mac and AIG—yet no lifeline for Lehman Brothers—serious institutional questions have arisen about the government’s role in the overall economy and where Uncle Sam draws the line. Robert Litan examines the ever-changing situation and whether these actions have changed the face of capitalism as Americans know it. Read More
RESEARCH AND COMMENTARY
Martin Mayer, July 29, 2008, The New York Times
Martin Mayer argues that Congress has given the Bush White House yet another chance to operate outside the Constitution by giving Treasury Secretary Henry Paulson the go-ahead for his two-part plan to salvage Fannie Mae and Freddie Mac, the government-sponsored mortgage companies — a blueprint that violates fundamental American principles in two worrisome ways. Read More
RESEARCH AND COMMENTARY
William H. Frey, July 10, 2008, The Brookings Institution
High gas prices and the housing market slowdown are reversing past population declines for older U.S. cities, new Census data show. William Frey writes that the South and interior West still contain most of the nation’s fastest-growing cities. But older cities like Boston, Chicago and St. Paul began adding residents again in the past year, as formerly hot destinations like Phoenix, Dallas and Las Vegas began to cool off. Read More
PAST EVENT
Thursday, June 05, 2008
9:30 AM to 12:00 PM
Washington, DC
Hurricanes, retirement, home-buying and tax-base erosion all pose financial risks. Yet markets to reduce these risks are elusive. The Hamilton Project at Brookings released papers at a discussion on how sound public policy can play a critical role in helping to foster new markets or expand existing markets in ways that could provide widely shared benefits. Read More