The proposal to phase out Fannie and Freddie implies that the Obama Administration believes that a homeownership rate of less than 100% could be optimal. This is the opposite of what we have seen in the past, since the “American Dream” is what politicians have fiercely pushed for.
This means that renting is being supported much more strongly. Benefits such as being able to relocate much easier due to a new job have been promoted. The Obama Administration has become enthusiastic about renting, making it seemingly easier to phase out Fannie and Freddie. Republicans can quietly recede from unqualified backing of homeownership and Democrats can boost credibility and support affordable options for renters.