Atlanta Fed economist sees GSEs taking more risks

U.S. mortgage finance enterprises Fannie Mae and Freddie Mac are likely to take greater risks as they face stiffer competition from banks and regional Federal Home Loan Banks, a study by an Atlanta Federal Reserve Bank economist said.

"Expanded competition will likely mean narrower profit margins and reduced franchise values for Fannie Mae and Freddie Mac," the paper by Atlanta Fed economist Scott Frame and New York University economics professor Lawrence White said.

The study, which was obta

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