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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Wednesday, April 23, 2014 | 12:00 p.m. – 1:30 p.m.
Graduation day: How dads’ involvement impacts higher education success

Join a diverse group of panelists — including sociologists, education experts, and students — for a discussion of how public policy and culture can help families lay a firmer foundation for their children’s educational success, and of how the effects of paternal involvement vary by socioeconomic background.

Event Registration is Closed
Thursday, April 24, 2014 | 12:00 p.m. – 1:30 p.m.
Getting it right: A better strategy to defeat al Qaeda

This event will coincide with the release of a new report by AEI’s Mary Habeck, which analyzes why current national security policy is failing to stop the advancement of al Qaeda and its affiliates and what the US can do to develop a successful strategy to defeat this enemy.

Friday, April 25, 2014 | 9:15 a.m. – 1:15 p.m.
Obamacare’s rocky start and uncertain future

During this event, experts with many different views on the ACA will offer their predictions for the future.   

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