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The Editors

Fannie and Freddie Are Not Piggy Banks

What does a U.S. immigration program have to do with the housing market? Nothing. Yet lawmakers are once again attempting to tap mortgage-finance giants Fannie Mae and Freddie Mac to fund unrelated legislation, this time to cover the cost of increasing the number of green cards for foreign graduates with advanced degrees. Fannie and Freddie, it seems, have become Washington’s favorite piggy bank.

Some may see this as a good thing. The U.S., after all, spent $190 billion bailing out the companies, so why not siphon some of the money back to pay for other priorities? The reality is that doing so raises mortgage costs for borrowers regardless of their credit risk, threatens to stall the housing market’s comeback and lowers the odds that Washington will ever fix the two companies.