Fannie, Freddie hit a crossroads

It’s been more than five years since the giant mortgage businesses Fannie Mae and Freddie Mac succumbed to the financial crisis and were bailed out by the federal government. But even as they accrue huge profits amid an improving housing market, there’s no end in sight for the government’s management of the two companies.

Both parties, as well as housing businesses, agree that Fannie and Freddie cannot return to the way they were and that they need to be shut down. But there’s no agreement about what should happen next.