The Obama Administration is willing to start the process of winding down Fannie Mae and Freddie Mac, but it must be done gradually over as many as five to seven years to prevent disruptions to the mortgage market and the economic recovery, according to a high ranking Treasury Department official.

Treasury under secretary Jeffrey Goldstein said the administration is committed to shrinking the government share of the mortgage market by increasing GSE guarantee fees and raising downpayment requirements. 

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