Freddie Mac, for one, says that the GSEs do obtain significant benefits from their special tax benefits and other perks. However, Freddie Mac also argues that the public benefit is far greater. Thus, even using the lowest estimate of consumer benefits and the highest estimate of the funding advantage in our range of estimates, the value of consumer interest-cost savings resulting from Freddie Mac and Fannie's activities significantly exceeds the value of their funding advantage. A major concern among GSE opponents is that the giant companies will use their preferential economics to enter new fields. Although the immediate casualties of Enterprise incursions into the primary market might be existing mortgage providers, we believe consumers will be the ultimate losers.
Less competition means higher borrowing costs and fewer financing options over the long term.
Not only are lenders interested in the GSEs and what they do, but so are others in real estate. In Defense of Fannie and Freddie, NAR Absent Peter G. Miller, the publisher of Realty Times, is the author of six real estate books, the original creator and host of America Online's Real Estate Center, and a regular columnist with The Real Estate Professional. Click here for a printer-friendly version of this article. Click here to translate this page to another language. Click here to e-mail this article to a friend.