Obama outlines reforms in housing finance system

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white-house

President Obama called Fannie Mae and Freddie Mac a “failed business model” in a speech outlining new housing goals on Tuesday.

The president is backing three proposals in finance reform, including streamlining refinancing for borrowers, waiving closing costs for those who refinance on shorter terms, and creating special programs that will expand eligibility for refinancing for those without government-backed mortgages. Overall, the President’s position is to "preserve access to safe and simple mortgage products like the 30-year, fixed-rate mortgage."

In a chat on Zillow.com, Obama stated he intended to push a housing package through congress by the end of this year.