By Binyamin Applebaum | The New York Times
In the seven years since the housing market started to fall apart, politicians of both parties have promised repeatedly to build a better system for financing the American dream of owning a home. There is little sign of progress.
Instead, the stopgap nationalization of housing finance has hardened into one of the most enduring legacies of the Great Recession. The federal government guaranteed about 87 percent of new mortgage loans last year, through Fannie Mae and Freddie Mac and the Federal Housing Administration, effectively setting the terms and providing the money for nine out of 10 home purchases and refinanced loans.
In a speech on Tuesday, President Obama signaled that Washington may finally be returning to the place where the financial crisis started. With the housing market on the mend, Mr. Obama said it was time to “wind down” Fannie Mae and Freddie Mac.
