President Barack Obama Says It Is Time To Wind Down Fannie And Freddie

Source: Aamer Madhani / USA Today

Almost five years after taxpayers bailed out mortgage giants Fannie Mae and Freddie Mac, President Obama said on Tuesday that it was time for private investors to take a bigger role in the mortgage market.

Fannie and Freddie collapsed in 2008 before being bailed out with almost $200 billion in taxpayer funds.

For the better part of his time in the White House, Obama has faced calls to shake up Fannie Mae and Freddie Mac, but the administration has held back on taking action while the housing market was weak.

With his remarks, Obama weighed in clearly behind bipartisan efforts in the Senate at mortgage reform. At the same time, he made it clear that he expects any legislation will spell out a limited government role for backing Fannie Mae and Freddie Mac in the future, and that it must ensure Americans’ continued access to a 30-year mortgage at a fixed interest rate.

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