What I read right now from Fidelity news sounds for me totally different, no word about shutting, liquidating or anything like this (see below) so I would suggest to wait what exactly President will say.
US: Reminder on Obama's housing speech- it is 4:05pm ET in Phoenix. Text making
the rounds says he will call for "Accelerate a process of systematically
reducing the government's direct credit risk exposure by bringing private
capital in front of the Fannie Mae (FNMA:$1.53,00$-0.26,00-14.53%) and Freddie Mac (FMCC:$1.41,00$-0.23,00-14.02%) guarantee. The government
currently takes direct credit risk on more than 80% of all new mortgage
originations, through FHA, VA, USDA, and Fannie Mae (FNMA:$1.53,00$-0.26,00-14.53%) and Freddie Mac (FMCC:$1.41,00$-0.23,00-14.02%) . There are
two key approaches for reducing Fannie Mae (FNMA:$1.53,00$-0.26,00-14.53%) and Freddie Mac's (FMCC:$1.41,00$-0.23,00-14.02%) credit loss
exposure: 1) a capital markets approach in which private investors take on the
risk of the portfolio's first losses (a "risk syndication model"); and 2) an
insurance approach in which well capitalized and regulated private institutions
insure a portfolio of mortgages against default and collect insurance premiums
(a "mortgage insurance model" or "MI"). The period of transition before Congress
passes comprehensive legislation should be used to continue aggressively
piloting these approaches to both reduce the government's exposure and gain
valuable insights about the most efficient ways to encourage private capital
back into the housing finance system."
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