The American Bankers Association held its Annual Convention Business Expo and Directors’ Forum last week in Chicago. Lenders need to have more skin in the game for the government sponsored enterprises to have a future — a future that might include nationalizing Fannie Mae and Freddie Mac as a single entity or two separate entities or merging them with Federal Housing Administration or Ginnie Mae, according to presentations at a session of the future of the GSEs. Nationalization of Fannie and Freddie would bring to the situation the moral hazard of government insurance, cautioned one speaker.

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