White House proposes ending conservatorship of Fannie and Freddie

Part of the White House's "Reform Plan and Reorganization Recommendations" calls for the privitization of Fannie Mae and Freddie Mac (FMCC). The White House explains, "This proposal would transform the way the Federal Government delivers support for the U.S. housing finance system to ensure more transparency and accountability to taxpayers, and to minimize the risk of taxpayer-funded bailouts, while maintaining responsible and sustainable support for homeowners. Proposed changes, which would require broader policy and legislative reforms beyond restructuring Federal agencies and programs, include ending the conservatorship of Fannie Mae and Freddie Mac, reducing their role in the housing market, and providing an explicit, limited Federal backstop that is on-budget and apart from the Federal support for low- and moderate-income homebuyers." Shares of Fannie Mae are up 4c to $1.52 in afternoon trading while Freddie Mac is up 1c to $1.66. Reference Link