THE BASIS POINT

Government’s Role In Mortgages Won’t Shrink

The debate about government’s role in the mortgage biz continues. President Obama has concluded that the government will have to play a major role in the mortgage market going forward. Fannie and Freddie would probably be preserved under the White House plan although with different names and under different constraints, operating more as utilities. And the government would back mortgage securities issued by the firms but not the company’s themselves. The White House isn’t certain whether to unveil its ideas formally ahead of the 2012 elections. Is that how things are now – our government is frozen for over a year prior to any election???

White House Wants Proposal On Government’s Role In Mortgages