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Opinion
Megan McArdle

How's Obama Going to Get U.S. Out of the Mortgage Market?

U.S. President Barack Obama just gave a speech saying that he wants to reform the housing market, pulling back on the government’s role as the primary backer of your mortgage. And about time.
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U.S. President Barack Obama justgave a speech saying that he wants to reform the housing market, pulling back on the government's role as the primary backer of your mortgage. And about time.

The government currently backs about 90 percent of newly issued mortgages, through Fannie Mae, Freddie Mac, the Federal Housing Administration and Department of Veterans Affairs. To all intents and purposes, except for very large loans to very affluent people, there is no private mortgage market in the U.S.