WASHINGTON — Despite promises from the Obama administration to lay out its plans for the government-sponsored enterprises in the 2011 budget, the future of Fannie Mae and Freddie Mac earned just one sentence in Monday's proposal.
"The administration continues to monitor the situation of the GSEs closely and will continue to provide updates on considerations for longer term reform of Fannie Mae and Freddie Mac as appropriate," according to the budget.
That compares to the four sentences the administration dedicated to the future of the GSEs in the previous budget. At that time, the administration outlined the options for Fannie and Freddie, including privatization, nationalization or regulating them like public utilities.
The lack of detail is sure to anger congressional Republicans, especially after the Treasury Department agreed in December to lift the caps on credit lines the government has provided to Fannie and Freddie.