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What would a post-Fannie and Freddie world look like?

A view of San Francisco's famed Painted Ladies victorian houses on February 18, 2014 in San Francisco, California.

Turns out Republicans and Democrats can agree on some things. A bipartisan plan emerged in the Senate this week, backed by Senate Banking Committee leaders Tim Johnson (D-SD) and Mike Crapo (R-ID), that would wind down mortgage providers Fannie Mae and Freddie Mac. 

Fannie and Freddie were originally set up to make buying a home cheaper for many Americans. But after they went bust during the last financial crisis, many in Washington want the quasi-governmental outfits snuffed out for good. That's a tall order, since voters and the powerful real estate industry enjoy their subsidized mortgages.

Marketplace's economics commentator Chris Farrell joins Morning Report host David Brancaccio to discuss the potential consequences for home buyers -- good and bad.

Click on the audio player above to hear the full report. 

About the author

Chris Farrell is the economics editor of Marketplace Money.

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