Obama Proposes Fannie & Freddie Reforms as Housing Market Continues to Languish

Three years after the housing market collapsed, efforts to clean up the financial mess created by Fannie Mae (OTC: FNMA ) and Freddie Mac (OTC: FMCC ) - the government agencies that largely inflated the bubble - remain stuck in limbo as Washington policymakers bicker over the details. Meanwhile, the market continues to suffer through the aftermath. The total value of U.S. single-family homes plummeted by roughly $798 billion in the final three months of 2010. For the year, values fell by more than $2 trillion to $22.3 trillion, according to Zillow.com. More than 27% of all homeowners are now underwater and mortgage rates are swiftly starting to move up - threatening to kill any chance the market has to rebound from the worst disaster in its history.