Garrett says U.S. support for housing market to be withdrawn slowly-WSJ

Dec 29 (BestGrowthStock) – Government support for the housing market should be
cautiously withdrawn and not be rushed, Scott Garrett, the incoming chairman
of the U.S. House Financial Services subcommittee, told the Wall Street Journal.

“We recognize that some things can be done overnight and other things
cannot be,” Garrett, a Republican representative for New Jersey’s 5th
Congressional district told the Journal.

Garrett, who would oversee housing finance giants Fannie Mae and
Freddie Mac upon assuming charge, told the Journal that he has “not
established a specific time frame for winding them down.”

“You have to recognize what the impact would be on the fragile housing
market as it stands right now,” Garrett told the Journal.

Many Republican lawmakers had earlier blamed Fannie Mae and Freddie Mac
for paving the way for irresponsible lending that led to the historic boom and
the bust of U.S. housing markets and wanted to include housing finance reforms
in the financial rules rewrite. [ID:nN26265038]

However, several Republicans now concede that a speedy exit may not be
practical, because Fannie Mae and Freddie Mac have such a dominant position in
the nation’s housing market, the paper said.

Fannie, Freddie along with the Federal Housing Administration and the
Department of Veterans Affairs have guaranteed nearly 90 percent of home loans
made in the first three quarters of 2010, the newspaper said, citing trade
publication Inside Mortgage Finance.
(Reporting by Sakthi Prasad in Bangalore; Editing by Lincoln Feast)

Garrett says U.S. support for housing market to be withdrawn slowly-WSJ