March 20, 2012
The Federal Housing Finance Agency submitted to Congress its plan to redefine Fannie Mae and Freddie Mac’s role in the housing market. The plan could form the basis for Congressional action but it appears unlikely in this election year. The conservatorships of Fannie and Freddie are now over three years old and has cost taxpayers over $180 billion.
The FHFA plan identified three strategic goals for the next phase of the conservatorships: build a new infrastructure for the secondary mortgage market, gradually contract the government-sponsored enterprises dominance and maintain foreclosure prevention activities and credit availability for new and refinanced mortgages.