The U.S. Mortgage Bankers Association announced today that they will ask Congress to transform Fannie Mae and Freddie Mac into several smaller, privately held companies. These companies would issue mortgage securities with a government guarantee. Successor entities would give Fannie Mae and Freddie Mac the authority to create securities backed by certain types of mortgage. This break into smaller companies would certainly make people feel more protected, and there would really be no risk. It is so important for the government to ensure stability in funds for mortgages, and it is time something is done. I will be curious to hear what Fannie Mae and Freddie Mac have to say about this proposal, I have not heard of them releasing a comment yet. What do you think? Could this be the turnaround we all need to see? It is good to hear that some effort is being made, since it seems that this issue has been sitting around for a while. It is also a good to hear news about them, especially today when shares for both companies are showing consistent decline.