Will we finally see the end of government distortion of the real estate and mortgage markets through these two entities? Maybe, but not without a fight from the rent seekers and the economically ignorant. The NAR qualifies on both counts and weighs in with a "yeah, but:"
The National Association of REALTORS® urged Congress this week to not move too fast in reforming Fannie Mae and Freddie Mac.
“NAR strongly agrees that the existing system failed and that reforms are needed. However, redesigning a viable secondary mortgage model that will protect taxpayer dollars and serve the country’s home owners today, and in the future, can only be achieved through a methodical, measured effort,” 2011 NAR President Ron Phipps said in testimony before the House Subcommittee on Capital Markets this week.
In other words, the NAR doesn't want its customers and members to compete for capital based on the merits of the deals they create and still want taxpayers to assume the risk for private mortgage transactions. Politically motivated government manipulation of the mortgage market through Fannie and Freddie caused an unprecedented nationwide collapse of the real estate market, and the NAR just wants to tinker around the margins lest they lose their influence and have to play on a level field.
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