U.S. Modifying Mortgages in the hands of the government

As the federal government have the U.S. modifying mortgages its hands, it’s likely that President Bush administration will leave the task of deciding how the mortgage finance companies will operate further will be in the hands of the next president. Whatever course of action their conservators take will have a major influence on the economy and stabilization of the troubled housing market and an immediate influence on the cost to the taxpayer.

According to political and financial analysts, regulators are in a difficult position as to helping struggling homeowners and protecting the government from losses.

As November presidential election draws closer, politics will play a role in important decisions for the next president and congress. The Office of Management and budget said on Friday that the Fannie Mae and Freddie Mac’s liabilities will not be included in the federal budget.

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