<![CDATA[February 11, 2011 –
The Obama Administration announced a plan today to "wind down" the federal government's support for the mortgage market by reducing Fannie Mae and Freddie Mac's footprint in the housing market. The plan calls for the following actions to achieve this goal:
- Phasing in increased pricing at Fannie Mae and Freddie Mac to make room for private capital.
- Reducing conforming loan limits.
- Requiring a minimum 10% down payment.
- Reducing Fannie Mae and Freddie Mac’s investment portfolio by 10% annually.
- Removing FHA from the private loan guarantee business.
- Strengthening anti-predatory loan practices, improving underwriting standards and more mortgage disclosures.
- Increasing accountability and transparency in the securitization process.
More information on the White House plan can be found by clicking here.