Incoming Chair Wants To Unwind Housing Aid

Washington, DC, Dec. 29, 2010 -- Federal support for the housing market should be pulled back cautiously but not rushed, the incoming chair of the U.S. House Financial Services subcommittee, told the Wall Street Journal.

"We recognize that some things can be done overnight and other things cannot be," said Scott Garrett, a Republican representative from New Jersey told the Journal.

Garrett, who would oversee Fannie Mae and Freddie Mac, told the Journal that he has not established a specific time frame for winding Freddie and Fannie down, noting that the housing market is still fragile.

Some legislators blamed Fannie Mae and Freddie Mac for the boom and the bust of U.S. housing markets and wanted to include housing finance reforms in the financial rules rewrite.