Industry NewsMortgage

The Obama plan: Goldilocks, Fannie, Freddie and FHA

Finding a 'just right' mortgage market fix
Published on Feb 15, 2011

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by CareyBot

Are we heading toward a Goldilocks solution for Fannie Mae and Freddie Mac? And if so, what does that really mean for consumers and real estate professionals?

The Obama administration's much-delayed "white paper" on housing finance reform -- nearly two years in the making -- turned out to be just 31 pages that essentially said: Total privatization of the home mortgage market won't suit us. (Too hot.) Total nationalization of the market won't, either. (Too cold.) But something in between -- well, you know the story -- should be just right.

Because of its diminutive size and lack of specificities, it's easy to dismiss Obama's report to Congress last week. But the administration's emphasis throughout on the need to reduce the federal gove