GOP leaders lay out plan to end gov't support for Fannie Mae, Freddie Mac

Republicans on the House Financial Services Committee released Aug. 17 recommendations for ending government bailouts of Fannie Mae and Freddie Mac.

"To achieve a healthy, sustainable mortgage finance system," they wrote, "House Republicans support mortgage finance reform legislation that seeks to achieve the following goals:"

• Reestablish a housing finance market that has long-term stability in which private capital is the primary source of mortgage financing.pan>
• Restore stability and liquidity to the secondary market for residential mortgages, and prevent significant disruptions to the financial market been the rescue of government-sponsored enterprises.
• Encourage innovation and diversity in housing finance that provide choices for consumers.

• Protect taxpayers from further losses and future

  bailouts

• Require that taxpayers be made whole on

  outstanding loans, guarantees and capital infusions

  made by the government.

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