Could a federal takeover of Fannie Mae and Freddie Mac prove disasterous for low income rental housing?
Who would have thought we would be looking at a federal takeover of Fannie Mae and Freddie Mac? Because it was never anticipated that this would happen there are a number of potential consequences of the takeover that have not been thought out. Failure to do so may have disastrous consequences for low income rental housing. Walter Moreau, executive director of the Austin-based nonprofit housing organization Foundation Communities, and Texas’ largest nonprofit tax credit developer, altered me to a some areas of deep concern to the affordable housing community regarding the impending federal takeover of Fannie Mae and Freddie Mac (“the GSEs”). Today’s New York Times article discloses the likely federal government takeover of Freddie and Fannie. The Times reports when the auditors from Morgan Stanley started to review the GSEs’ books, they found some questionable stuff. Freddie Mac and Fannie Mae have also inflated their financial positions by relying on deferred-tax assets – credits accu
