Obama Says Private Capital Should Take Lead Mortgage Role
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President Barack Obama is calling for private capital to take the lead role in the nation’s mortgage market with the U.S. government continuing to provide a backstop only against catastrophic risk.
The president for the first time is endorsing an approach to remake the housing finance system as Fannie Mae and Freddie Mac are wound down. He said the government still must play a role to preserve broad access to 30-year, fixed-rate mortgages that underpin the market.