A private lender cooperative model for residential mortgage finance

Arbeitspapier

We describe a set of six design principles for the reorganization of the U.S. housing finance system and apply them to one model for replacing Fannie Mae and Freddie Mac that has so far received frequent mention but little sustained analysis - the lender cooperative utility. We discuss the pros and cons of such a model and propose a method for organizing participation in a mutual loss pool and an explicit, priced government insurance mechanism. We also discuss how these principles and this model are consistent with preserving the 'to-be-announced,' or TBA, market - particularly if the fixed-rate mortgage remains a focus of public policy.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Staff Report ; No. 466

Classification and Topics

• Classification: Wirtschaft ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Institutions and the Macroeconomy ; Financial Institutions and Services: Government Policy and Regulation ; Financial Crises
• Subject: GSE ; MBS ; mortgage

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dechario, Toni ; Mosser, Patricia ; Tracy, Joseph ; Vickery, James ; Wright, Joshua
• Event: Veröffentlichung
• (who): Federal Reserve Bank of New York
• (where): New York, NY
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/60781
• Last update: 10.03.2025, 11:45 AM CET