Obama backs 30-year mortgage, more private funding

PHOENIX, Ariz. – Aug. 7, 2013 – President Barack Obama made a speech in Phoenix, Ariz., yesterday and outlined his vision for government-owned Fannie Mae and Freddie Mac, which collectively back about half of all U.S. mortgages. In his speech, Obama recommended an end to government ownership and a return to more private funding of mortgages.

Collectively called government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac do not directly make home loans. Instead, they buy mortgages from primary lenders and pool them into investment funds. That system makes it easier for local lenders to offer mortgages and helps keep the home finance system running smoothly.

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