Don Layton

Housing Finance and Private Capital

Phil Swagel, Gene Sperling, Josh Rosner, Drew Newton, Jim Lockhart, Don Layton

Former officials and industry leaders including Gene Sperling, Josh Rosner, and Jim Lockhart debated legislative frameworks to dismantle the Fannie Mae and Freddie Mac duopoly, agreeing on the necessity of explicit government backstops and private capital buffers while clashing over specific regulatory powers and market concentration risks. The discussion highlighted a White House push for an affordability fee and highlighted deep disagreements on whether current proposals contain sufficient "first-loss" provisions to prevent future taxpayer bailouts or if they dangerously concentrate risk among a limited pool of private investors. Ultimately, the panel identified a contentious path toward reform that requires balancing reduced government market share against the urgent need for modernized infrastructure and robust counter-cyclical regulations within a $10 trillion mortgage system.