Mar 24, 2010 2 Comments ›› Pat Dollard
Treasury Secretary Tim Geithner says a plan for Fannie Mae and Freddie Mac will be out in months.
Geither told a House panel that the plan won’t call for the government-backed mortgage lenders to be abolished, but that they will need to curb their risk taking.
The remarks come as the federal government looks at possible ways to overhaul the firms. The federal government took over the companies more than 18 months ago during the height of the housing crisis. More than $125 billion in emergency federal aid has been invested into the firms by Treasury to cover their losses.
Republicans have pushed for privatizing the firms while Democrats have urged caution on making changes while the housing market is still in flux. Sales of existing homes fell for the third straight month February, the National Realtors Association announced today.