Green’s Research Examines Remaking Fannie, Freddie
The Wall Street Journal featured research by SPPD Professor Richard Green that offers recommendations for the government on handling Fannie Mae and Freddie Mac. The paper, which was completed for Genworth Financial Corp. and written with a former Freddie Mac executive, advises that the government play a continued role in the mortgage market by guaranteeing issues of securities backed by certain mortgage products. “While the charge of ‘too big to fail’ is hardly unique to the government-sponsored enterprises, it is a legitimate concern. The challenge is how to get the volume that is required for liquidity with less concentration and lower risk,” the paper stated. Time also cited the report. Green is director and chair of the USC Lusk Center for Real Estate.