The federal government released a report outlining its plans for Fannie Mae and Freddie Mac. At the core, the Obama Administration believes that, under normal market conditions, the private sector – subject to stronger oversight and standards for consumer and investor protection – should be the primary source of mortgage credit and bear the burden for losses. As a result, the government is seeking to wind down the mortgage giants. 

The report can be found here or below.

Coverage of the report at The Wall Street Journal, Bloomberg, The Street, and Alea.

Reforming America’s Housing Finance Market