Freddie Mac-No Politics (FMCC)

[schaub]

Just read this on Yahoo Finance... How would this effect FMCC? Not quit sure if this is going to be good news or bad news?


UPDATE 1-Obama wants sharp drop in gov't-backed mortgages

Federal Home Loan Mortgage Corp
FMCC.OB
$0.73
-0.11-13.21%
3:00pm CST
Fri Feb 4, 2011 4:22pm EST
(Recasts, adds background)

Feb 4 (Reuters) - The Obama administration wants to sharply reduce the role of government-backed mortgages in the U.S. housing market, Treasury spokesman Steve Adamske said on Friday.

"We are looking at how to transition from a government having too big a footprint in the marketplace to one that has the private sector playing the dominant role" in the mortgage market, Adamske said.

Adamske's comments followed a report from CNBC that the administration's white paper on mortgage finance companies Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB), expected sometime next week, would include a proposal to reduce the role of government-backed mortgages below 50 percent.

Adamske declined to confirm that precise figure, which did have have a timeframe attached.

Fannie Mae and Freddie Mac, which are chartered by Congress, were seized by the government in September 2008.

More than 85 percent of all new residential mortgages, including home refinancings, were backed by the government in some form, according to Inside Mortgage Finance, an industry publication. CNBC cited that figure as 95 percent. (Additional reporting by Dave Clarke; Editing by Leslie Adler)

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