# Guaranteed to Fail Book ## Guaranteed to Fail: Fannie Mae, Freddie Mac, and the Debacle of Mortgage Finance ### By [Viral V. Acharya](http://w4.stern.nyu.edu/faculty/bio/viral-acharya), [Matthew Richardson](http://w4.stern.nyu.edu/faculty/bio/matthew-richardson), [Stijn van Nieuwerburgh](http://w4.stern.nyu.edu/faculty/bio/stijn-van-nieuwerburgh), and [Lawrence J. White](http://w4.stern.nyu.edu/faculty/bio/lawrence-white) Fannie Mae and Freddie Mac, the government sponsored enterprises (GSEs) designed to expand the dream of home ownership to millions of Americans, cost taxpayers $150 billion to date and growing as bad loans collapsed during the financial crisis. Four NYU Stern professors ask “where is the outrage?” in running “the largest hedge fund on the planet,” in *[Guaranteed to Fail: Fannie, Mae, Freddie Mac, and the Debacle of Mortgage Finance](http://www.amazon.com/Guaranteed-Fail-Freddie-Debacle-Mortgage/dp/0691150788)*. They propose a unique model of mortgage reform, using a novel public-private partnership as the means to transition to a fully private-based system. [![Cover of Guaranteed to Fail](http://web-images.stern.nyu.edu/pa/news/gtf/book_cover.gif)](http://www.amazon.com/Guaranteed-Fail-Freddie-Debacle-Mortgage/dp/0691150788 "Buy Guaranteed to Fail on Amazon")[Buy *Guaranteed to Fail* on Amazon](http://www.amazon.com/Guaranteed-Fail-Freddie-Debacle-Mortgage/dp/0691150788 "Buy Guaranteed to Fail on Amazon") [Find *Guaranteed to Fail* on Facebook](http://www.facebook.com/pages/Guaranteed-to-Fail-by-Acharya-Richardson-Van-Nieuwerburgh-White/166648850033026) [Read the NYU Stern press release](https://www.stern.nyu.edu/experience-stern/news-events/uat_024025 "NYU Stern Faculty Offer Market-Based Solutions for Mortgage Reform in New Book") ## Contributors [![Viral Acharya](http://web-images.stern.nyu.edu/pa/news/gtf/acharya_60x70.jpg)](http://w4.stern.nyu.edu/faculty/bio/viral-acharya) [Viral V. Acharya](http://w4.stern.nyu.edu/faculty/bio/viral-acharya) [![Matthew Richardson](http://web-images.stern.nyu.edu/pa/news/gtf/richardson_60x70.jpg)](http://w4.stern.nyu.edu/faculty/bio/matthew-richardson) [Matthew Richardson](http://w4.stern.nyu.edu/faculty/bio/matthew-richardson) [![Stijn Van Nieuwerburgh](http://web-images.stern.nyu.edu/pa/news/gtf/nieuwerburgh_60x70.jpg)](http://w4.stern.nyu.edu/faculty/bio/stijn-van-nieuwerburgh) [Stijn Van Nieuwerburgh](http://w4.stern.nyu.edu/faculty/stijn-van-nieuwerburgh) [![Lawrence White](http://web-images.stern.nyu.edu/pa/news/gtf/white_60x70.jpg)](http://w4.stern.nyu.edu/faculty/bio/lawrence-white) [Lawrence J. White](http://w4.stern.nyu.edu/faculty/bio/lawrence-white) ## Press coverage ![logo](http://web-images.stern.nyu.edu/pa/news/crb_32.jpg)[Reckless Optimism](http://web-docs.stern.nyu.edu/pa/claremont_review_books_winter2012.pdf) (Book Review, *Claremont Review of Books*, Winter 2011/12) ![logo](http://web-images.stern.nyu.edu/pa/news/forbes_32.gif)[How to Put an End to Fannie and Freddie](http://www.forbes.com/sites/janetnovack/2012/01/10/how-to-put-an-end-to-fannie-and-freddie/) (Author Opinion Editorial, *Forbes*, January 10, 2012) ![logo](http://web-images.stern.nyu.edu/pa/news/aea_32x32.jpg)[Financial Economics](http://www.aeaweb.org/articles.php?doi=10.1257/jel.49.4.1230) (Book Review, *Journal of Economic Literature*, December 2011) ![logo](http://web-images.stern.nyu.edu/pa/news/business_standard_32.gif)[Costly creations](http://business-standard.com/india/news/costly-creations-/453092/) (Book Review, *Business Standard*, October 20, 2011) ![logo](http://web-images.stern.nyu.edu/pa/news/economist.gif)[Why Fannie Mae and Freddie Mac need to diet](http://www.economist.com/node/21532248) (Book Review, *The Economist*, October 15, 2011) ![logo](http://web-images.stern.nyu.edu/pa/news/nprlogo_32.gif)[The Downsides Of Mortgage Tax Breaks](http://www.npr.org/2011/08/23/139886591/the-downsides-of-mortgage-tax-breaks) (Viral Acharya Interview, NPR, August 23, 2011) [Read more press coverage](https://www.stern.nyu.edu/guaranteed-to-fail-book/press-coverage "Guaranteed to Fail") about *Guaranteed to Fail* --- ## Endorsements "...A down-to-earth analysis of why Fannie Mae and Freddie Mac collapsed..." --**Nouriel Roubini**, coauthor of *Crisis Economics: A Crash Course in the Future of Finance* "...A comprehensive and well-written study..." --**Raghuram G. Rajan**, author of *Fault Lines: How Hidden Fractures Still Threaten the World Economy* "...An excellent book... presents a cogent proposal..." --**Dwight Jaffee**, University of California, Berkeley --- ## NYU Stern Faculty on Mortgage Reform - Read the [NYU Stern Blueprint on Mortgage Finance Reform](http://web-docs.stern.nyu.edu/pa/gtf/0_full_blueprint.pdf) (PDF) - Watch a [webinar by contributor Stijn van Nieuwerburgh](http://prmia.org/events/view_events.php?eventID=T4354) or [download slides from his presentation](http://w4.stern.nyu.edu/salomon/docs/Webinar_Presentation_Stijn_Van_Nieuwerburgh_web.pdf) (PDF) - Watch videos of NYU faculty presentations at the [2011 NYU Stern/University of Maryland Conference on GSEs, Housing, and the Economy](http://www.rhsmith.umd.edu/cfp/events/2011/GSE2011/) - [Watch April 20 Event Video](https://www.stern.nyu.edu/experience-stern/news-events/uat_024245 "NYU Stern Faculty Present Their New Book, Guaranteed to Fail") --- ## Other Voices on Mortgage Reform Click a title below to download a specific proposal, or [browse all proposals here](https://www.stern.nyu.edu/guaranteed-to-fail-book/other-voices-mortgage-reform "Guaranteed to Fail"). Department of the Treasury, "Reforming America’s Housing Finance: a Report to Congress"American Enterprise Institute (Wallison P, Pollock A, & Pinto E), "Taking the Government Out of Housing Finance: Five Proposals..."Jaffee D, White J, Wallison P, et al. "Mercatus Center: Five Proposals for a New Housing Finance System..."Scharfstein D & Sunderam A, "The Economics of Housing Finance Reform: Privatizing, Regulating and Backstopping Mortgage Markets"Dynan K & Gayer T, "The Government’s Role in the Housing Finance System: Where Do We Go from Here?"Zandi M & deRitis C, "The Future of the Mortgage Finance System"Mortgage Finance Working Group, "A Responsible Market for Housing Finance: a Progressive Plan to Reform the US Secondary..."Hancock D & Passmore W, "Catastrophic Mortgage Insurance and the Reform of Fannie Mae and Freddie Mac"Congressional Budget Office, "Fannie Mae, Freddie Mac, & the Federal Role in the Secondary Mortgage Market"Jaffee D, "Reforming the US Mortgage Market Through Private Market Incentives"Dechario T, Mosser P, Tracy J, Vickery J & Wright J, "A Private Lender Cooperative Model for Residential Mortgage Finance"Ellen I, Tye J, Willis M, "Improving US Housing Finance through Reform of Fannie Mae & Freddie Mac..."The Housing Policy Council, "Moving Beyond Fannie Mae and Freddie Mac: a Proposal for a New Generation of Entities..."Federal Government Affairs & Housing Finance Committees, "Future of Fannie Mae and Freddie Mac & the Housing Finance System"Mortgage Bankers Association, "MBA’s Recommendations for the Future Government Role in the Core Secondary Mortgage Market"National Association of Realtors, "Recommendations for Restructuring the GSEs"Woodward S & Hall R, "Financial Crisis and Recession" --- ## NYU Stern Faculty on the Dodd-Frank Act ![Regulating Wall Street](http://web-images.stern.nyu.edu/pa/regwallst_80.gif) The NYU Stern authors of *Guaranteed to Fail* contributed also to [Regulating Wall Street](http://www.wiley.com/WileyCDA/WileyTitle/productCd-0470768770,descCd-buy.html), a definitive analysis of The Dodd-Frank Act written by 40 Stern faculty. [Read more about Regulating Wall Street >>](http://www.wiley.com/WileyCDA/WileyTitle/productCd-0470768770,descCd-buy.html)