Investeens

Ever since the bailout of Fannie and Freddie back in 2008, Republicans have been trying to limit the influence that Fannie and Freddie have in the housing market.  Finally, in late March of 2011, the first reform bills have passed through the Subcommittee and will go to the full Financial Services Subcommittee for further consideration.  If these bills are enacted in the near future, it will be a huge step toward taking down Fannie and Freddie.

The eight bills passed by the Republicans will increase the cost of buying guarantees for loans and will decrease the overall influence the two GSE's have in the housing market.  After all, if people can't afford to buy the guarantees, Fannie and Freddie will earn less profit and will slowly deteriorate.  It is vital to keep in mind that they must be taken down slowly in order to avoid another financial meltdown or recession.  If not, housing prices will fall tremendously because the risk will increase. 

The Republicans have stated that the motive behind the bills is to stop Fannie and Freddie from burdening the hard-working public.  They have already received $150 billion (approximately 10% of our annual deficit), so the reasoning behind the bills is understandable.  However, the bills still have to pass through the full Committee before being voted on by the Congress.  If they don't pass, the Republicans will either have to modify the proposed bills or start again from the drawing board, which is definitely something they don't want to do!

Check out the article for more information on the bills.