Fannie Mae Is a Needless and Risky Model for UK Housing
There are many lessons to be learnt from the financial crisis. But the need for countries to establish institutions such as Fannie Mae is not one of them. The failure and abrupt nationalisation of the US's Federal National Mortgage Association was at the heart of that crisis. Yet George Osborne, Britain's chancellor, has announced plans to introduce similar state-backed mortgage guarantees, with proposals for a “Help to Buy” scheme to underwrite mortgage lending.