White House Blames Congress for Mortgage Takeover

September 8, 2008 - 1:10 PM
The White House says that the giant federal takeover of troubled mortgage giants Fannie Mae and Freddie Mac could have been prevented if Congress had acted on its recommendations.
US Government Takes Over Mortgage Giants (image)

The Bush administration's seizure of Fannie Mae and Freddie Mac is potentially a $200 billion bet that it will help reverse a prolonged housing and credit crisis.

Washington (AP) - The White House says that the giant federal takeover of troubled mortgage giants Fannie Mae and Freddie Mac could have been prevented if Congress had acted on its recommendations.

White House press secretary Dana Perino told reporters Monday that President Bush believes the move will help the housing market recover. Perino said the economy as a whole will not return to strong job growth without an end to the current housing correction.

The White House says the takeover will allow time for Congress and the next administration to determine the appropriate future role for the companies. Perino said this must include reforms, and a change in the companies' primary mission to increasing the availability and affordability of home mortgages.