The end of Fannie and Freddie?

(MCT)—The regulator for Fannie Mae and Freddie Mac wants to shrink the seized housing-finance giants gradually and create a new market for mortgage-backed securities to help the private sector.

The recommendations came in a new strategic plan for Fannie and Freddie submitted to lawmakers Tuesday by the Federal Housing Finance Agency, which has overseen the companies since they were put into government conservatorship in 2008 to avoid their failure.

Fannie and Freddie have almost single-handedly kept the housing finance market afloat in recent years. Continue reading

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