Part of the federal response to the bursting of the housing bubble and resulting financial crisis was the federal rescue of the government‐​sponsored housing‐​finance enterprises, Fannie Mae and Freddie Mac. Given both the enormous cost of bailing out Fannie Mae and Freddie Mac, which could run to over $200 billion, along with the central role they played in creating the housing bubble, it is imperative that the debate over the costs and benefits of their activities begins. The panelists will review the history and current regulatory structure of Fannie Mae and Freddie Mac and offer proposals for reform.