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America cannot survive without 4% 30 years mortgage because we donot have manufacturing jobs like 60s or 70s when we were able to sustain higher mortgage rate. The US is left with only one large manufacturing business, i.e. real estate manufacturing. The 20% -40% economy depends on the real estate. GSEs were not going bankrupt in 2008. GSEs were put under conservatorship so that Treasury can move $40B per month toxic asset from wall street to GSEs to save wall street banks. Putting GSEs under conservatorship was completely illegal. The "mark-to-market" accounting was biggest fraud created by the WS to crash the market. Why would you consider someone's home value $300K if he is paying mortgage on $400K- Just because next door house was sold at $300K?
“Affordable housing, as a matter of policy, is an admirable goal for the federal government. There are countless families and individuals working hard to save up enough for a down payment on a home. But we’re concerned about recent proposals that would wind down Fannie and Freddie, because these institutions are an indispensable part of making home ownership affordable. Proposals to eliminate that GSEs would be disruptive to mortgage markets, threaten home ownership, and be at odds with the responsibilities of FHFA as the conservator of these institutions under the HERA statute.”

… “The government’s conservatorship was not created to be longstanding or permanent. It could have placed them into receivership but did not. HERA, passed by Congress and signed into law by the President, prescribes FHFA’s duty to conserve value for shareholders and to nurture the institutions back to profitability. Shareholders have rights under the constitution, and FHFA has responsibilities under the law – and both preclude the Treasury’s decision in 2012 to take 100% of profits on an ongoing basis, which permanently undercapitalizes the institutions and does not allow investors any return on their investments.

“With this as context, Investors Unite believes the best way to ensure the availability of affordable housing is to immediately stop the illegal Third Amendment Sweep and allow the GSEs to begin rebuilding their capital base. Eventually a reformed Fannie and Freddie should be released from conservatorship. None of this would prevent the government from making a substantial return on its loans to these institutions: Besides the principal pay-down through excess dividend payments that has already occurred under the sweep, the U.S. owns 80% of the equity through common stock, which some have estimated to be worth more than $200 billion alone. This would be a huge return for the taxpayer, and would actually produce funds that could be placed into an affordable housing trust to help troubled borrowers.”