As a result of the high loan limits and the suppression of private securitization through the obstacles and disincentives listed below, approximately 90% of all originations and 99% of all securitizations are now government guaranteed. This is an ongoing liability for the taxpayers and an unhealthy fiscal position for the United States.

In the past decade, the Securities and Exchange Commission’s budget has increased threefold and the fundamental problems remain. For the sake of investors, who have lost billions in fraudulent schemes that should have been discovered, it is high time that these organizational issues be addressed.

AEI's housing finance reform plan provides the opportunity for a possible bi-partisan solution that could result in true reform of our housing finance market.

Alex Pollock gives the House Financial Services Committee 12 different solutions and ideas for moving forward and dealing with Fannie Mae and Freddie Mac.

Government sponsored enterprises could be reformed using a specific plan that ensures the availability of mortgage financing while focusing the government on its relative strengths of providing a backstop against financial catastrophes and directing appropriate subsidies for affordable housing.

The government's stimulus package to restore stable economic growth with low inflation was not well designed and in order to improve the current situation, the United States must stimulate business investment and reduce uncertainty.

The United States should take seven steps to secure sound mortgage finance in the future.

Government involvement has worsened the economic crisis, and the role of the Federal Reserve in regulating the financial sector should be reconsidered.