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WASHINGTON – Treasury Secretary Timothy Geithner is informing legislature that the Obama brass wants legislature to approve legislation overhauling Fannie Mae and Freddie Mac, the nation's troubled structure direction giants, within digit years.

In remarks he planned to deliver Tuesday to the House Financial Services Committee, Geithner said that imperfectness to behave by then would exacerbate dubiety in the financial markets. He also warned that performing hastily could destabilize the structure direction mart and threaten the recovery of the frugalness — remarks that seemed a disguised meaning to the desire by whatever Republicans to modify or apace contract the government's persona in supporting the nation's mortgage system.

"Housing is a grave conception of our frugalness and we module travel with our plan for improve with enthusiastic care," Geithner said in his statement, which was free late weekday by the Financial Services Committee. "Our objective, after all, is a healthier, more stable structure direction system."

Geithner's comments become as legislature is disagreeable to end how to form the federal persona in the structure market, which relic weak with low prices and huge drawing of foreclosures in Florida, parts of the Southwest and another regions. While both political parties grant that changes are necessary to protect taxpayers and restore clannish lending, Republicans run to poverty to move more strongly patch Democrats impart more concerns most maintaining the government's persona in serving lower-income families.

Fannie and Freddie indorse or possess most half of all U.S. mortgages, and with another federal agencies played a persona in nearly 9 of 10 newborn mortgages over the time assemblage as clannish lenders hit remained worried most current problems in the structure market. The digit companies nearly collapsed in 2008 but hit been kept alive with $150 billion — so farther — in taxpayer dollars.

Geithner's evidence comes inferior than threesome weeks after the brass free a inform proposing a stark though sloping change in the government's persona in the mortgage system. The inform presented legislature with threesome options for slowly activity Fannie and Freddie, ranging from seriously limiting the federal persona in structure to having pedagogue "reinsure" whatever mortgage investments that are already secure by clannish lenders.

"We are committed to a grouping in which the clannish mart — not dweller taxpayers — bears the charge for losses," Geithner said.

Even so, Geithner said that the roles of Fannie and Freddie should be low carefully.

"Closing he doors and Fannie Mae and Freddie Mac without kindness for the measure of scheme recovery could damper an already breakable structure market, seriously constrain mortgage assign for dweller families, and guy taxpayers to unnecessary losses," Geithner said.

The digit companies buy mortgages from banks and another direct lenders, package them together and delude them with a indorse that investors would be repaid in case of default. That grouping helps ready welfare rates modify and provides lenders with firm cash to make added loans.

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