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  Obama's call for reorganizing Fannie and Freddie substantially moves the focus back to the continued existence of these entities or a similarly functioning organization with explicit government involvement. The irony here, which seems quite lost on House Republicans, is that it will likely take a government guarantee of loans to induce private capital to return to the mortgage market. Otherwise, access to mortgage loans becomes more out of reach for the middle class, the 30-year fixed rate becomes the exception, not the norm, and housing prices see substantial declines.
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