Administration Denies Mortgage Policy Decision Report
Officials with the Obama administration deny a report in the Washington Post that it has decided to favor restructuring the secondary mortgage market in a way that will leave intact a strong federal role.
White House spokesman Matt Vogel called the report that the administration had chosen any one of the three possible policy options that it outlined in February of this year “simply false.”
The first two of its February policy options would have eliminated the two government-sponsored companies Fannie Mae and Freddie Mac and replaced them with a different institution with a much smaller government role. The third option would also eliminate the two but would replace them with very similar institutions.
The paper also reported that administration officials have not yet decided whether to advance their policy choice on mortgages before the November 2012 elections.
NAFCU and CUNA have called for some continuing federal guarantees in the secondary mortgage market.