The U.S. Housing Finance System

U.S. Treasury Secretary Timothy Geithner said on Wednesday that the United States is far behind on reforming the country’s housing finance system, where the government’s mortgage buyers Fannie Mae and Freddie Mac provide funding for the bulk of U.S. home loans. 

“The biggest source of unfinished business in the financial reform effort is in the housing finance area,” Geithner told the Chicago Economic Club. 

“We are much further behind in laying out the future path of reform in the housing finance system and what should replace those institutions.”  

Sales of new houses in the United States dropped slightly in February for a second month, being an unexpected decline in housing market. 

Economists said that the housing market is a long a way from fully recovery. 

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