WASHINGTON – President Barack Obama will call for a continued but limited government role to backstop the U.S. mortgage market, as part of a strategy to ultimately replace Fannie Mae FNMA -14.53% and Freddie Mac FMCC -13.41% with a bigger private-sector presence, according to White House advisers.
In a speech Tuesday, Mr. Obama will begin making the case that a limited government guarantee is needed to preserve access to the long-term, fixed-rate loans that have become a staple of the U.S. housing market. But he also will call for ending the business model of Fannie and Freddie, which took on risks that benefited private shareholders during good times and saddled taxpayers with losses when the housing market crashed in 2008.
For more, go to The Wall Street Journal.
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