Capitol Hill braces for a battle over Fannie and Freddie's future

U.S. policymakers are preparing to wrestle with the question of what to do with mortgage giants Fannie Mae and Freddie Mac. Many are searching for a way to ensure that the housing market can keep functioning without taxpayer support, even when the economy gets in deep trouble. Some Republicans argue for privatizing Fannie and Freddie, while many Democrats want a guarantee that a federal agency is always available to buy and sell mortgages.

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