Talk Is Cheap for Fannie and Freddie

When it comes to Fannie Mae and Freddie Mac, the most likely course of action over the coming year might end up being inaction. Not that you would know, listening to the Obama administration or its Republican opponents. Both are preparing plans to overhaul the mortgage giants and housing finance.

The administration says it will have proposals ready by January. Its revamp may include some form of continued backstop for mortgage-finance. Republicans in their "Pledge to America" last week, meanwhile, called for an end of the "government takeover" of Fannie and Freddie and a "shrinking of their portfolios."

For all the talk, paralysis may be more likely, especially if elections change control in Congress. And secretly, this may be just what politicians from both parties prefer.

Click Here to Read: Talk Is Cheap for Fannie and Freddie...