Fannie Mae's and Freddie Mac's days are numbered, if President Barack Obama has anything to say about it—which, as he showed on the stump in Phoenix, Ariz., he certainly does.
Delivering a speech from the epicenter of the housing crisis, the president called for a complete revamp of the housing finance industry, at least in terms of the government's involvement. This revamp, namely, calls for the wind-down of the GSEs.
Specifically, the president pointed to a measure introduced in the Senate this summer by Republican Bob Corker and Democrat Mark Warner that would eliminate the GSEs and replace them with a system in which the private market would purchase the home loans from lenders and then securitize them. The government's role in this scenario would be to insure or guarantee the securities but at a cost to investors.
Read more...Obama Throws His Weight Behind GSE Wind-down - Daily News Article - GlobeSt.com
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