Obama unveils plans to loosen control of Fannie and Freddie

After weeks of speculation, the Obama Administration submitted a report to Congress that would loosen government control of major mortgage lenders Fannie Mae and Freddie Mac.

The plan offers details about how the government will wind down its financing of the housing giants and lays out a number of plans to help fix the struggling mortgage market.

One focus of the report is helping families who may have had trouble achieving a mortgage in the past due to credit problems. In addition, the proposal also calls for increased consumer protections and increased transparency for investors.

“This report provides a strong plan to fix the fundamental flaws in the mortgage market and better target the government’s support for affordable homeownership and rental housing,” said Housing and Urban Development Secretary Shaun Donovan. “We must continue to take the necessary steps to ensure that Americans have access to quality housing they can afford.”

Despite the recommendations in the report, the proposal will require Congressional approval and many changes may not be implemented to assist struggling homeowners until as late as 2018.