Today, the Obama Administration issued a report regarding potential plans for the future of Fannie Mae and Freddie Mac. While no specific legislation was included, the report outlines choices for the Federal Government’s involvement in backing home mortgages.
As it stands, the initial reading of the report indicates that the Federal Government intends to ramp down their current level of involvement with backing mortgages, with each option representing a different level of disengagement. It appears as though reform of America’s housing market will no longer be supported by the Federal Government in the same way as it has been in the past.
The experts at Mission Mortgage are pouring over the documents and talking through the implications of the three plans outlined today and we intend to issue further commentary in the near future. For today, we want to make two documents available to you.
The first document is the official press release from The Department of the Treasury Public Affairs and The U.S. Department of Housing and Urban Development (HUG) Public Affairs. You can access a pdf version of the full press release by clicking here.
The second document is the full report issued to the U.S. Congress today by the White House, called “Reforming America’s Housing Finance Market”. A pdf version of the full document can be accessed by clicking here.
Obviously, Mission Mortgage and others in the lending industry, as well as professionals throughout the housing industry, are very concerned about any changes to the current levels of government involvement. As we read and digest the documents, we will plan to provide further details and analysis.