The U.S. Government Accountability Office (GAO) recently released a report and letter to Congress with regards to the future structure and function of Fannie Mae and Freddie Mac, the Government-sponsored enterprises that were put into conservatorship under the Federal Housing Finance Agency (FHFA) in 2008. The report discusses the GSEs performance thus far in meeting their obligations, identifies options for their future and describes the implications of each option. The GAO recommends that Congress re-evaluate the responsibilities and deficiencies of the enterprises and consider options to revise their structure. It proposes three viable options:
- Reconstitute the enterprises as for-profit corporations with Federal sponsorship, with additional restrictions placed on them;
- Establish the enterprises and government agencies or corporations; or
- Privatize or abolish the enterprises, dispersing their responsibilities to the private sector.
