Mortgage industry calls for big changes at Fannie and Freddie


Trying to get out there first with a proposal for the future of Fannie Mae (FNM) and Freddie Mac (FRE), the Mortgage Bankers Association (MBA) is calling for Fannie and Freddie to be broken up into several smaller privately held companies that issue securities with an explicit government guarantee, not just an implied guarantee, according to a Wall Street Journal report.

The Obama administration has not yet issued its recommendations and they're not expected until next year. The Center for American Progress plans to issue its report on the future of housing finance this fall.

Originally published