HUD's Affordable Housing Regulations
Serving Two Masters Redux

After numerous academic and other studies showed that Fannie Mae and Freddie Mac were not doing as much as banks to provide affordable and low income housing--a function that the GSEs describe as part of their "mission"--in April the Department of Housing and Urban Development proposed draft regulations that would increase the GSEs' obligations in this area. Fannie and Freddie and some of their allies in Congress immediately complained that HUD had gone too far and that the revised standards might increase their risks and reduce their earnings. This response raises once again the question of whether a government "mission" can be performed by a shareholder-owned company.

In a June 2004 letter to the Office of Federal Housing Enterprise Oversight, commenting on OFHEO’s proposed corporate governance regulations, Ann M. Korologos, the chair of Fannie’s corporate governance committee, neatly outlined the essence of this conflict of interest. Fannie's directors, wrote Korologos,"are concerned that the [OFHEO] proposal’s focus on the federal charters and 'public mission' of the Enterprises may detract from our role as representatives of Fannie Mae's shareholders. As directors, our duty is to act in the best interest of the shareholders." At this conference, experts will review the HUD regulations and consider whether Fannie and Freddie are suitable vehicles for performing a government mission. Representatives of Fannie and Freddie were invited, but declined to participate.

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Peter J.
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Tuesday, September 16, 2014 | 5:00 p.m. – 6:00 p.m.
The Constitution as political theory

Please join us for the third-annual Walter Berns Constitution Day Lecture as James Ceasar, Harry F. Byrd Professor of Politics at the University of Virginia, explores some of the Constitution’s most significant contributions to political theory, focusing on themes that have been largely unexamined in current scholarship.

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Wednesday, September 17, 2014 | 8:10 a.m. – Thursday, September 18, 2014 | 1:30 p.m.
Third international conference on housing risk: New risk measures and their applications

We invite you to join us for this year’s international conference on housing risk — cosponsored by the Collateral Risk Network and AEI International Center on Housing Risk — which will focus on new mortgage and collateral risk measures and their applications.

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Speaker of the House John Boehner on resetting America’s economic foundation

Please join us as Speaker John Boehner (R-OH) delivers his five-point policy vision to reset America’s economy.

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Reforming Medicare: What does the public think?

Please join us as a panel of distinguished experts explore the implications of the report and the consumer role in shaping the future of Medicare.

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