The Obama administration on Friday release its long-awaited proposal for overhauling the mortgage market, calling for gradually shutting down bailed-out Fannie Mae and Freddie Mac and reducing the government's now huge role in housing finance.
In a move that would affect Southern California and other high-cost areas, the 32-page plan calls for phasing in an increase in the down payment required for loans by Fannie and Freddie to 10%, while reducing the maximum size of mortgages they can back.
