Affordable Housing

Lockhart’s Remarks Confuse GSE Debt, MBS Investors 

(update 1; edited sections for clarity) Investors are clearly paying attention to what Federal Housing Finance Agency director James Lockhart says. Unfortunately, it’s not been all that easy for investors to decipher his latest set of remarks. In testimony Thursday afternoon to the Senate Banking Committee, Lockhart said “the conservatorship and the access to credit from the U.S. Treasury provide an explicit guarantee to existing and future debt holders of Fannie Mae and Freddie Mac.”