A re-engineering of the secondary market is going to take some serious time. And brains. It’ll require some of the brightest minds in finance and public policy to figure out how to keep the liquidity Fannie and Freddie provide while losing the inherently harmful incentives of the old regime. The trouble is that most of the officials responsible for crafting a solution are the very same ones working overtime helping to keep the current housing market afloat amidst a very fragile economy. Our one message to Washington’s housing policymakers: take your time and get it right. Too much is at stake, for the millions of Americans whose futures rely on a strong housing finance system.
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