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Call for careful overhaul of US mortgage lending

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The US does not intend to wind down completely Fannie Mae and Freddie Mac, the large government-sponsored mortgage companies that are eating up billions of taxpayer dollars, given the fragile state of the housing market. Administration officials say that any credible proposal to overhaul the government-sponsored enterprises (GSEs), as Fannie and Freddie are called, would need to include a “thoughtful approach” to prevent house prices from dipping lower.

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