Paul Ryan Favors Dissolving Fannie Mae, Freddie Mac
A Mitt Romney administration plan for a future housing finance system likely shuns any form of a government guarantee, based on the Republican presidential candidate's choice of Rep. Paul Ryan as a running mate.
The Republican congressman from Wisconsin, who heads the House Budget Committee, released a plan that was passed by the House last year to slash spending across nearly every sector of the government, excluding the military. Ryan's plan has received renewed attention after Romney, the Republicans' presumptive presidential nominee, announced Saturday that Ryan was his pick for vice president. Democrats are looking to target specifics from the Romney campaign while Republicans are hoping to recharge their base.
Romney's selection of Ryan also gives markets much needed insight into how the former governor of Massachusetts would proceed with a long-anticipated reform of the government-sponsored enterprises. The long-term outlook of the Ryan plan involves a complete wind-down of Fannie Mae and Freddie Mac and an end to their bailouts -- which have cost $188 billion so far.
The Ryan budget would "privatize the business of government-owned housing giants, Fannie Mae and Freddie Mac, so they no longer expose taxpayers to trillions of dollars' worth of risk."
Read the rest of this story at HousingWire.
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