Michael Barr, assistant Treasury secretary for financial institutions, and Edward DeMarco, acting director of the Federal Housing Finance Agency, will testify before the House Financial Services Subcommittee Wednesday regarding the future of Fannie Mae and Freddie Mac.
Panel chairman Paul Kanjorski said they will "examine the primary causes of the financial losses for Fannie Mae and Freddie Mac, as well as the progress made during the last two years in stabilizing our mortgage markets and ensuring the continued availability of reasonably priced loans."
The two mortgage giants, which control $5.2 trillion in housing debt or about 53% of the market, have been wards of the government for almost two years.
The subcommittee also will explore the steps being taken to limit future losses at the GSEs. To date, Treasury has provided $150 billion in cash to keep Fannie and Freddie's capital positions in the black.
In today's market, they provide liquidity for almost 70% of all new originations.
