WASHINGTON The Obama administration unveiled on Friday a plan to unwind the government-controlled mortgage buyers Fannie Mae and Freddie Mac. Below are the administration's short term steps to reduce the government's role in the $10.6 trillion mortgage market.
* Reduce conforming loan limits or the size of the mortgages that the Federal Housing Administration, Fannie Mae and Freddie Mac can guarantee
* Force borrowers to make at least a 10 percent down payment on their houses. This would be phased in gradually so that any mortgage that Fannie Mae and Freddie Mac guarantees eventually has at least a 10 percent down payment
* Wind down Fannie Mae and Freddie Mac's investment portfolio at an annual rate of no less than 10 percent a year. Fannie and Freddie together hold $1.5 trillion of outstanding mortgages.
* Increase the price of the Federal Housing Administration's annual mortgage insurance premium by 25 basis points
* Create a "task force" to coordinate and consolidate existing housing finance agencies: the Department of Housing and Urban Development and the housing finance programs at the Department of Agriculture and the Department of Veterans' Affairs
(Reporting by Rachelle Younglai, editing by Andrew Hay)