CBO Proposal to Eliminate Fannie and Freddie is Dangerous to US Economy


To:Honorable President Barack Obama

Cc:FHFA Director, US Department of Justice and whosoever it may concern

Sub: CBO Proposal to Eliminate Fannie and Freddie is Dangerous to US Economy [Excerpts from paper on “Coalitions of Lenders and Borrowers…,” revised in 2015, available at http://pro-prosperity.com/Research/Coalition%20of%20Borrowers.pdf ]

Date:    January 2, 2015

Dear President Obama,

In a recent study, reported by the Wall Street Journal,1 the US Congressional Budget Office has proposed to eliminate Fannie and Freddie (F-F) by raising mortgage lending fees sufficiently to make lending profitable for private banks. The CBO proposal is intended to let private banks take over mortgage lending business from F-F so that the F-F can be eliminated eventually.

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