The Obama administration is working toward producing a plan to wind down Fannie Mae and Freddie Mac, according to Treasury secretary Timothy Geithner.

Last February, secretary Geithner proposed three options for reforming the housing finance system. This spring he intends to release a more detailed approach.

"Our plan will wind down the GSEs and bring private capital back into the market, reducing the government's direct role in the housing market and better targeting our support towards first-time homebuyers and low- and moderate-income Americans," the secretary said Thursday afternoon.

Geithner said he plans to work with the ranking members on the House and Senate banking committees to "lay the foundation for a consensus," that could to lead to legislation.  

"There has been some convergence on thinking about alternative models," for the new housing finance system, the secretary said.

But he stressed that it will be a "complicated process," and he doesn't expect legislation will pass this year.

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