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Fannie Mae, Freddie Mac reform gains momentum

Posted on Monday, September 16, 2013 at 12:04:31 PM

Access to affordable residential financing is always a priority - for both homeowners, borrowers and the government. The reform talks regarding mortgage enterprises Fannie Mae and Freddie Mac are picking up steam, and the U.S. Senate Banking Committee is eyeing a deadline for the end of 2013.

Over the past several weeks, more plans have emerged to overhaul both Fannie Mae and Freddie Mac, according to Reuters. When the financial crisis hit, both were taken over by the U.S. government. Now, ideas have been circulated by President Barack Obama, the Senate and the House of Representatives on ways to improve residential financing.

The Senate bill advocates for removal of the government-sponsored enterprises, while the House bill focuses on changing assistance for unexpected losses, Reuters reported.

Overall, any changes are intended to help borrowers and the real estate industry. Julia Gordon, director of housing finance and policy at the Center for American Progress, told The New York Times that what's at stake is acquiring affordable mortgages. A strengthening economy might encourage further talks, as housing risks reduce.

However, any changes might take a while to happen, the news source noted. It will take time for any bills to take affect, and many policy-makers are still watching the market and the economy closely.