Obama Administration May Seek Fannie, Freddie Takeover
August 26, 2011 by Special To Personal Liberty
President Barack Obama may seek to take over Fannie Mae and Freddie Mac as part of his new jobs plan, reports Fox News.
Officials from the Administration have hinted at some big ideas for the two organizations, including the move to have the government hold and lease foreclosed homes and potentially completely take over the mortgage buyers Fannie Mae and Freddie Mac, the news outlet reported.
The Obama Administration has been leaning toward an $85 billion instant stimulus that would decrease rates on housing, but this would likely require a full takeover of the two organizations, according to the Fox News.
This type of large-scale takeover of the market may help those who have been in trouble concerning their mortgages, but it would hurt the Americans who have paid their dues and keep their credit in good shape, reported the news outlet.
A government takeover would essentially be saying that the people who are fiscally responsible and pay their mortgage on time would have to support the individuals who were unable to manage their finances to keep their houses afloat, The Washington Post reported.