The President has publicly called for the “winding down” of Fannie Mae and Freddie Mac and an end to their “failed business model.” That is the most refreshing news I’ve had in a while.
It’s not hard for most people to see that a government run organization just should not be this heavily involved in the housing market. So some of the aims of bills in both the House and the Senate point to:
– more private capital involved
– more access to 30-year fixed rate mortgages
– a responsible transition to a non-government NPO
These are all way overdue but it’s good that public officials from the bottom all the way to the even deeper bottom are able to feel secure enough to speak out about it.
Let’s hope some good actually comes of these proposals and we see real changes in the markets soon. If you’ve had any negative GSE experiences, either with Fannie or Freddie, leave your story in the comments section.