The Future of Fannie Mae and Freddie Mac – mortgage rates

Today President Obama gave a speech in which he talked about reforming the current mortgage system and potentially bringing and end to government control of the two largest players in the industry.  Mortgage rates, refinances, purchases etc have all benefited from the government’s role in Fannie Mae and Freddie Mac.  Their absence is cause for concern as it is not clear on what will happen post government influence.  So pundits believe it is all talk and that the government will never leave the industry since essentially the government is the industry (meaning they provide the backing for most loans).   Over the next 12-24 months we’ll see how this plays out and what the plans are for winding down Fannie Mae and Freddie Mac.