President Barack Obama has his own plan to eliminate Fannie Maeand Freddie Mac and replace them with a private secondary mortgagemarket.

Obama's plan would put him in opposition to House Democraticleaders and some Senate Democrats who have opposed efforts to winddown the GSEs.

Although the White House has not yet released a copy of thespeech, to be delivered Tuesday in a Phoenix appearance, newsoutlets were reporting that Obama's plan does look a lot likeThe Housing Finance Reform and Taxpayer Protection Act,introduced in June by Sen. Bob Corker (R-Tenn.) and Sen. MarkWarner (D-Va.).

S. 1217 would wind down Fannie Mae, Freddie Mac and theFHFA within five years. Private investors would purchase mortgagesfrom lenders and repackage them as securities.

The FHFA's functions would be transferred to a newly created­Federal Mortgage Insurance Corp., which Warner's office said wouldbe modeled after the FDIC and would mandate that investors retain10% capital to protect against future bailouts.

The House Financial Services Committee passeda bill on July 24 that would also privatize the secondarymarket and eliminate Fannie and Freddie. The Protecting AmericanTaxpayers and Homeowners Act includes many of the same provisionsas the Corker-Warner bill, but would also allow Federal Home LoanBanks to serve as mortgage aggregators, packaging individualmortgages for the private securities market. That bill now heads tothe House floor, where it has Republican majority support.

White House officials told reporters Monday that Obama's planwould limit the government's involvement in mortgage finance to agovernment guarantee or some form of insurance, and regulatoryoversight.