Republicans taking over the House of Representatives seem to be backing away from their pledge to overhaul or privatize Fannie Mae and Freddie Mac. Earlier this year, Republicans backed a plan to eliminate the government’s ties to the mortgage giants and privatize them within five years if they were considered financially viable.
But now that they are in control, they are advocating a go-slow approach.
“We recognize that some things can be done overnight and other things cannot be,” Scott Garrett, the New Jersey Republican who will chair the House Financial Services subcommittee, told The Wall Street Journal.
As chairman of that panel, Garrett will be key player in any reform of Fannie and Freddie.
Garrett said he has not “not established a specific time frame for winding them down.”
“You have to recognize what the impact would be on the fragile housing market as it stands right now,” he told the Journal.
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