Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of New York
Staff Reports
A private lender cooperative model for residential mortgage finance
Toni Dechario
Patricia C. Mosser
Joseph Tracy
James Vickery
Joshua Wright
Abstract

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 β€œto-be-announced,” or TBA, market – particularly if the fixed-rate mortgage remains a focus of public policy.


Download Full text
Download Full text
Cite this item
Toni Dechario & Patricia C. Mosser & Joseph Tracy & James Vickery & Joshua Wright, A private lender cooperative model for residential mortgage finance, Federal Reserve Bank of New York, Staff Reports 466, 2010.
More from this series
JEL Classification:
Subject headings:
Keywords: Government-sponsored enterprises ; Housing - Finance ; Mortgages ; Insurance; Government
For corrections, contact Amy Farber ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal