President Barack Obama laid out his initiative to reform the secondary mortgage market in a speech on Aug. 6 that trash talked Fannie Mae and Freddie Mac and voiced support for a senate bill that would wind down the government sponsored enterprises and replace them with a mostly privatized system.

"For too long, (Fannie Mae and Freddie Mac) were allowed to make big profits buying mortgages, knowing that if their bets went bad, taxpayers would be left holding the bag. It was 'heads we win, tails you lose.' And it was wrong," Obama told his audience at a Phoenix construction company.

Instead, he proposed four core principles for how he would reform the housing finance system, and said he supports the bipartisan group of senators working to end Fannie and Freddie, referring to Republican Sen. Bob Corker of Tennessee and Democrat Sen. Mark Warner of Virginia, who introduced a GSE reform bill in June.