"Fannie and Freddie phase-out plan due"

[WinkyDink]

By Ben Rooney, staff reporterFebruary 9, 2011: 8:20 AM ET

http://money.cnn.com/2011/02/09/news/economy/fannie_freddie_phase_out/index.htm?hpt=T2
NEW YORK (CNNMoney) -- The Obama administration will issue a proposal later this week recommending the gradual elimination of government-sponsored mortgage backers Fannie Mae and Freddie Mac, a White House official said Wednesday.

The highly-anticipated "white paper," which is expected to be released Friday, will include three different options for reducing the role government plays in the mortgage market, the official said.
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Good? Bad? I don't have a mortgage any longer.

[enlightenment]

1. I suspect it is 'good' from an economic/reduce the debt

perspective, although I was under the impression that both Fannie and Freddie were publicly traded companies.

'Bad' from the perspective of there being a place where low and middle-income borrowers could have a chance at finding an affordable loan.

Another New Deal program bites the dust - FDR would be proud . . .

[marybee]

2. long overdue in my mind

na

[MadHound]

3. Wonder what they're going to due with all those bad mortgages their holding.

Since they're holding the bulk of bad paper. Will they foist it off on the American taxpayer before cutting loose, or will Fannie and Freddie be forced to eat all that bad paper as a private entity, and thus sink?

Interesting to watch.