Last week, we argued that Congress’ decision to use a GSE g-fee hike to pay for the payroll-tax holiday is quasi-nationalization, despite the lack of any official action on the conservatorships. This de facto takeover continues, with the FHFA mandating now that Fannie and Freddie extend forbearance on certain mortgages. This puts the GSEs still more deeply under the USG’s wing, even as the FRB expands its calls for still more GSE action on the nation’s behalf.


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