If you were among the nearly 1,000 people who watched our live PolicyCast with former Freddie Mac CEO Don Layton in December, you gained a rare inside perspective on emerging housing proposals focused on affordability, including the hot-button issues of 50-year mortgages and assumable low-rate home loans.
Layton, who is now Senior Fellow at NYU’s Furman Center for Real Estate and Urban Policy, set the table with this context: “When it comes to housing, Washington, D.C., is in a quick-fix mode. There’s a desire to do something that is not long-term fundamental reform — which takes years — but to deliver results today … That’s the motivation for a lot of what goes on.”
Layton, who headed up Freddie Mac 2012–2019, freely offered candid opinions on recent suggestions to increase affordability and end conservatorship of Freddie Mac and Fannie Mae, the Government Sponsored Enterprises (GSEs):
- 50-year mortgages: Layton says cost projections for this proposal typically assume rates on 50-year loans will match 30-year rates — which he calls unlikely — and warns higher interest costs in the loan’s initial period will outweigh other benefits.
- Assumable mortgages: Because the terms of existing investor-owned loans can’t be changed, this proposal won’t help current homebuyers.
- Ending GSE conservatorship: Layton has said the path to privatization should be gradual, with strong reforms and oversight to ensure market stability and taxpayer protections.
In an hour-long discussion that included questions from attendees, Layton discussed the challenges facing today’s homebuyers. His commentary is especially timely as policymakers, lenders and homebuyers navigate a market shaped by government intervention, affordability challenges and ongoing reform debates.
Layton also discussed the importance of Credit Risk Transfer (CRT) programs, which allow GSEs to share mortgage risk with private investors, thereby reducing systemic risk and providing market discipline.
The video webinar also featured a viewer survey on three timely topics.
PolicyCast Live Audience Survey (Dec. 16, 2025)
1. Will the 50-year fixed-rate mortgage proposal be implemented?
Yes ▉▉▉▉ 14.9%
No ▉▉▉▉▉▉▉▉▉▉▉▉▉▉▉▉▉ 85.1%
2. Should the GSEs risk-adjust pricing (LLPAs)?
Yes ▉▉▉▉▉▉▉▉▉▉▉▉▉▉▉ 84.78%
No ▉▉▉ 15.22%
3. Should Fannie Mae and Freddie Mac be merged?
Yes ▉▉▉▉ 23.33%
No ▉▉▉▉▉▉▉▉▉▉▉▉▉ 76.77%
Click here to listen to the entire PolicyCast with Don Layton.
If you want similar perspectives from top mortgage finance leaders, visit Arch MI’s Housing Policy page. PolicyCast, our video podcast series, features interviews with top housing officials from across the nation. You can also sign up to be notified about new issues of Capital Commentary, a newsletter covering public policy legislation shaping the housing industry’s future.