Faculty News

Prof. Lawrence White on Fannie Mae and Freddie Mac's guarantee of Bank of America's older mortgages

Excerpt from Bloomberg -- "While buying old mortgages may not seem in line with Fannie Mae and Freddie Mac’s mission of fueling new lending, it can help encourage banks to retain loans and then to find new ones, according to Lawrence White, a professor at New York University’s Leonard N. Stern School of Business. 'Providing liquidity today, tomorrow, or five years from now is all part of the mission,' said White, co-author of 'Guaranteed to Fail: Fannie Mae, Freddie Mac, and the Debacle of Mortgage Finance,' a 2011 book on their pre-crisis business."

Read more

Additional coverage in Bloomberg Businessweek.