Three Options For Reforming Mortgage Finance

What to do about Fannie Mae and Freddie Mac is still a major topic of discussion and negotiation in Washington D.C. Options are still being considered. The Obama administration is working with Congress. We don’t know yet which reform option will get selected. No one option has received majority support as yet.

Reuters reports: Fannie Mae and Freddie Mac, which buy mortgages from lenders and repackage them as securities from investors, were seized by the government in September 2008 as losses on mortgages they held mounted. The firms subsidize nearly nine out of 10 of all mortgages.

Since the Obama administration outlined ideas for restructuring the housing finance system, a handful of bills aimed at scaling back the government’s role and getting the private sector more involved in the secondary mortgage market have been introduced in the House.

However, no bills have been introduced in the Senate and the prospects for quick action appear slim.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
This entry was posted in fannie mae, freddie mac, mortgage, Politics and tagged , , , , , . Bookmark the permalink.