Analysis: Future of Fannie and Freddie is still undecided

07/22/2010 | Economist (free content), The

Keeping Fannie Mae and Freddie Mac solvent has consumed $145 billion in U.S. taxpayers' money, but financial-regulatory reform is leaving their future uncertain. Along with sister entity Ginnie Mae, Fannie and Freddie insured 96.5% of all mortgages originated in the first quarter. For the moment, the private sector isn't ready to take on that kind of burden, according to The Economist. "However unnecessary in the long run, the government's dominance of the mortgage market will not end soon," The Economist notes.

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