Congressional Republicans are looking at scaling back taxpayer support for the housing market through Fannie Mae and Freddie Mac. The Wall Street Journal says many Republicans blame Fannie and Freddie for the housing crisis and want the government to take a smaller role in the economy. U.S. Rep. Jeb Hensarling, R-Texas, says he will introduce legislation to transfer Fannie and Freddie’s role to the private sector within five years, with no future guarantees. Investors argue that the mortgage-backed securities need government guarantees to ensure home loans will be available when the market turns down. Banks warn that this could lead to higher costs to originate mortgages.
This week’s poll question: Should Congress cut support to Fannie Mae and Freddie Mac?
