Fannie and Freddie Can Never Be Truly Privatized

Ever since their near collapse during the 2008 financial crisis, the mortgage giants Fannie Mae and Freddie Mac have performed impressively under the conservatorship of the US government. They’ve returned more than $300 billion to the Treasury, far exceeding the $191 billion in taxpayer funds once needed to bail them out. They make homeownership easier for millions of Americans, guaranteeing about 40% of all single-family home loans and keeping credit flowing even through recessions.

White House officials are looking to change this arrangement, as investors clamor for a piece of what has proved to be a lucrative business. They should leave well enough alone.