The American Bankers Association (ABA) believes the role of the GSEs and FHA in the mortgage market should be gradually reduced so that 60% of home financing comes from the private sector with “no government aid.”

As part of a transition, Fannie Mae and Freddie Mac could be rolled into well-regulated cooperatives or public utilities that would ensure “stability and accessibility in the event of a market failure,” Christopher Dunn told the Senate Banking Committee on Tuesday.

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