The government has become deeply involved in the housing market in large part due to the role of government-sponsored enterprises (GSEs) and affordable housing mandates. Although Treasury Secretary Tim Geithner has announced intentions to reduce the role of GSEs in the mortgage market this spring, we have yet to see specific plans for reform. Meanwhile, the struggling housing market is clamoring for real, tangible solutions.
A new proposal would boost fees from Fannie Mae and Freddie Mac in order to compensate for an extension of payroll tax cuts. Anthony Sanders appeared on The Willis Report to analyze the proposal and explain why he thinks it's a bad idea.