Merging Giants— Who Wins When Fannie Mae And Freddie Mac Become One
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Merging Giants— Who Wins When Fannie Mae And Freddie Mac Become One
A merged Fannie/Freddie would have unprecedented market power that lets it dictate terms to lenders & borrowers alike. If you’re a shareholder, that’s great leverage. If you’re trying to buy a home, it’s risky. Fewer competitors in the secondary mortgage market means fewer incentives to get help for borrowers who don’t fit the perfect credit profile. Ackman says it’ll lower mortgage rates. Historically, when consolidation cuts costs at the top, …
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