“As the housing market awakens, policy makers will have to decide what to do with Fannie Mae FNMA +0.37% and Freddie Mac FMCC +0.76% . In the past four years, the firms, together with federal agencies, have backed about nine in 10 new loans. Without them, many of today’s home sales and refinances wouldn’t have happened.
Conventional wisdom in Washington says the mortgage giants, which effectively were nationalized in 2008 to keep credit flowing, should be wound down. But neither the White House nor Congress has proposed a serious plan for what should take their place or how to recoup the $142 billion taxpayers have put into the two companies.”
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