In 2008, an American mortgage repackaging crisis wound in financial players and governments around the world. It triggered a multi-year recession from which some countries are still recovering. The lengthy economic downturn is these days described in the news as “The Great Recession.”
It involved two U.S. Government sponsored agencies (GSEs) known by the nicknames Fannie Mae, and Freddie Mac. These agencies were created to help low income Americans obtain mortgages. Since the crisis was triggered by the packaging and repackaging of just such mortgages as speculative investments, both Fannie Mae and Freddie Mac were left holding the bag to the tune of tens of billions of dollars.
Forced into receivership and victimized by the popular press for failing to oversee events leading up to the failure, the two GSEs were eventually bailed out by the Federal Government to a storm of public anger.
As part of the Fannie Mae cleanup crew, Atlanta developer Egbert Perry joined the board, moving subsequently to head the the corporation as it restructured. He has recently stepped down as CEO and the hometown media snagged an interview. His discussions include the culpability of the two GSEs, as well as the nature and objectives of the recovery process to restore faith and functioning to Fannie Mae. Looking forward, he also provides an equally interesting take on what may almost certainly become the next full-blown national housing crisis: affordability.
Read the interview in AJC: In the eye of the housing storm: An AJC interview with Egbert Perry
