The Obama administration is holding a conference today to discuss ways to overhaul Fannie Mae and Freddie Mac, saying that doing so will be important to fixing the country’s broken housing finance system.
The conference will focus on a review of Fannie Mae, Freddie Mac, the FHA, Ginnie Mae, the Federal Home Loan Banks and the “significant private sector role” in mortgage origination, funding and servicing.
To date, the U.S. Treasury has spent more than $145 billion to keep Fannie and Freddie solvent, after seizing the lending giants in September of 2008, as they teetered on the brink of collapse.
Treasury Secretary Timothy Geithner said that the Obama administration wants a “comprehensive reform proposal that protects taxpayers, institutes tough oversight, restores the long-term health of our housing market, and strengthens our nation’s economic recovery.”
According to the Treasury, Fannie, Freddie and other government entities currently guarantee more than 90 percent of new mortgages.