Houses to put in order

No indications yet of Obama administration proposals for reforms at GSE's Fannie Mae and Freddie Mac, to be presented along with the 2011 federal budget.

Before the government takeover of the 2 GSE's in 2008, they had been the silent partner in 50% of home loans, buying loans from banks and lenders and selling them on to investors in packaged securities.

The Congressional Budget Office will now report in these agencies as federal operations. Fannie and Fred have received $100 billion of a $400 billion Treasury lifeline, senior preferred stock purchases with 1 10 % dividend. The Fed has committed to purchasing $1250 billion of their mortgages and $200 billion of their debt

At the end of July, the two companies had $5,500bn of outstanding debt and guarantees on securities, approaching the $7,200bn US public debt. The two also hold a combined $1,500bn of mortgages and mortgage-backed securities on their balance sheets..