Goodwin Procter's Business Litigation Reporter

Insurance Companies and Systemic Risk

 “We suggest that a mutual utility [to replace Fannie Mae and Freddie Mac], with incentive alignment and appropriate governance controls, could allow robust competition among lenders for mortgage origination...” wrote New York Fed economists Patricia Mosser, Joseph Tracy, and Joshua Wright in a new white paper on housing finance reform.  “…While certainly not riskless, our proposed utility structure is less risky than most alternatives."