Is the end near for both government-sponsored enterprises, Fannie Mae and Freddie Mac? David C. John of the Washington Times seems to think so.

Both GSEs remain under government control and have over stayed their welcome, accounting for more than 90% of the housing finance market. The private sector has become effectively frozen out since fees for guaranteeing and packaging mortgages into bond issues are very low.

Here's a bit from the article:

"Policymakers should be focused on fixing this dysfunctional approach to mortgage finance. Instead, the administration and its congressional allies have launched a series of generally unsuccessful efforts to enable borrowers to refinance homes that are now worth less than they owe.

With housing gradually rebounding, the need for mass refinancing programs has passed. Rising prices will enable underwater borrowers to return to building equity. Policymakers should now turn to developing a housing finance system that will stimulate housing sales."

Click here to read the full article.