Obama Says US Mortgage Market Still Needs Backstop

Law360, New York (August 6, 2013, 2:46 PM EDT) -- President Barack Obama on Tuesday called for the elimination of Fannie Mae and Freddie Mac and the creation of a government mortgage insurer of last resort as part of a broader plan for reshaping the nation's housing finance system.

In a speech in Phoenix, President Obama said Fannie Mae and Freddie Mac must be wound down, but the government should retain its role in backstopping the housing finance system through an insurance fund that could only be tapped after private investors are wiped out.

"While our...
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