This is the Cato Daily Podcast for Tuesday, March 14th,

2023. I'm Caleb Brown.

When Mark Calabria became head of the Federal Housing Finance

Agency, the chief regulator of Fannie Mae and Freddie Mac,

it was not that many months before one of the sharpest and largest economic downturns in American history,

all thanks to COVID-19 and the zealous reactions from various governments. all that had major impact on the

reactions from various governments.

All that had major impact on the housing market, and it's all detailed in Mark's new

book, Shelter from the Storm, how a COVID mortgage meltdown was averted. The book is available today. We spoke last week.

Mark, years ago, you left us, we waved goodbye, and you went to go work for the vice president of the United States

as the chief economist to Vice President Mike Pence.

You were there for a while and then you became the chief regulator for Fannie Mae and Freddie Mac.

Now just for the benefit of listeners, what do Fannie Mae and Freddie Mac do and what was your role as

Chief Regulator? Great question and so Fannie... Mac do and what was your role as chief regulator?

Great question and so Fannie and Freddie and the regulator also regulated the Federal Home Loan Banks,

they are in the secondary mortgage market.

So whereas you may go to a bank to get your mortgage, that bank may

sell off the mortgage and the secondary mortgage market.

So Fannie and Freddie would never deal directly with you as a consumer, but they

would potentially buy the mortgage from the bank where you did get your mortgage.

And so for people who followed the financial crisis closely in 07, 08, 09, Fannie and Freddie were,

a lot of fingers were pointed at Fannie and Freddie for having an insatiable demand for mortgages.

...