Fannie, Freddie on the Chopping Block

US Treasury Secretary Timothy Geithner said this morning that the Obama administration intends to proceed with plans “for winding down the GSEs” (government-sponsored entities) Fannie Mae and Freddie Mac. For once, the administration and its Congressional opponents seem to be on the same page, although Republicans want the two entities closed more quickly.

In his remarks, Geithner said:

[W]e will work towards comprehensive reform to create a more sustainable housing finance system. Our plan will wind down the GSEs and bring private capital back into the market, reducing the government’s direct role in the housing market and better targeting our support towards first-time homebuyers and low- and moderate-income Americans.

Geithner also noted that the administration wants to “move forward using the authority we have,” a signal that Obama is ready to push for reform perhaps more quickly and with a different focus than Congress expects.

President Obama earlier this week outlined, among other measures, a mortgage relief plan for homeowners who are up-to-date on their mortgage payments.