The Obama administration recently called for an orderly transition from the current form of the Fannie Mae and Freddie Mac secondary mortgage market to a new structure that would allow home buyers continued access to affordable, sustainable mortgages.

Without functioning mortgage markets, people cannot buy or sell homes. To ensure a smooth transition, it’s important that any new system involve some government backing, ensuring a continued flow of capital to housing markets during economic downturns.

This government support provides a safety net in case private capital flees the market, as it did during the recent downturn.

Reducing government involvement in the mortgage finance market is essential to keep the market healthy, but shouldn’t be done at the expense of the economy or home buyers.

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1. Florida Real Estate, Existing Home and Condo Sales Up in December 2010
2. First Time Homebuyers Getting the Cold Shoulder
3. Florida in 2010: Rent or Buy a Home?
4. Florida Existing-Home Sales Continue to Improve in April 2010
5. Over 64,000 Florida Buyers Claim Tax Credit