Removing Fannie and Freddie would matter little except that interest rates on 30-year loans would be higher, borrowers would have incentive to share interest-rate risk and forgo the valuable prepayment option, making homebuying slightly less pleasant but taxpayers better off and the system more stable.
normativepending
Speaker
Arnold KlingEvidence Quote
“it would be slightly less pleasant to be a buyer of a home it'd be more pleasant to be a taxpayer so and it would have a stability to the system that we could stop worrying about it all the time”
Created: 6/13/2026, 7:04:06 PM
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