Housing Finance Agency Head Worries About Mortgage Guarantees

"In the ongoing debate on how to reform the housing finance system, the House Financial Services Committee is holding a hearing this morning. Witnesses include the Treasury's Assistant Secretary for Financial Institutions Michael S. Barr and Federal Housing Finance Agency's (FHFA) Acting Director Edward J. DeMarco. The subject is the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac. DeMarco reveals his concerns about the most popular option for reform: an explicit government guaranteeing for mortgages going forward."