Congress is currently considering options for the structure of FannieMae and FreddieMac to prevent a repeat of the last two years' housing market collapse. It is very likely they will be set up as a quasi-public status. FannieMae was initially established in 1938 to purchase FHA and VA loans. Freddiemac was established in 1970.
The Federal Housing Finance Agency (regulator for Freddie and Fannie) is considering three options: Nationalization, Restoration as a government sponsored enterprise, or full Privatization.
The most likely outcome, and one that I would support, would be returning Freddie and Fannie to a government sponsored entity with strong risk oversight.
Mortgage Prices worsened in early morning trading and reversed yesterday's gains.
Best Conforming 30Year Fixed Rate 5.250% (APR 5.324%)
Best FHA 30Year Fixed Rate 5.250% (APR 5.537%)
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