Hank Paulson: Homeowner Incentives Should Roll Back

Former Treasury Secretary Henry "Hank" Paulson published an op-ed piece in the Washington Poston Friday in which he suggested that any major overhauls of Fannie Mae and Freddie Mac should be delayed until the housing market stabilizes. At that point, Paulson believes the government should roll back financial incentives that favor residential real estate purchases over other kinds of investments. He singled out homebuyer tax credits and the federal tax deduction for mortgage interest, among other initiatives, as contributing to the overall housing glut. He also described his own decision to put Fannie and Freddie into conservatorship during his term as "the most effective of the stimulus efforts undertaken in the past two years."