The lack of an effective plan to grapple with ailing GSEs Fannie Mae and Freddie Mac stands as a glaring omission in the historic financial reform bill working toward completion. The hope, of course, is that regulators will get to this issue in due time. The need right now, however, is acute.

The Congressional Budget Office has ruled that losses at the mortgage giants could rise to $400 billion. And if housing prices deteriorate more and defaults kick up, the cost to the taxpayer could hit as much as $1 trillion. Ouch. Both entities have been wards of the federal government since 2008, when takeovers were engineered to protect banks and funds that had bought their debt. Most likely, the costs will fall short of $1 trillion. But it would be nice to see a plan develop soon.

Many want them to maintain their ability to lower costs for prime mortgages but not non-prime mortgages. Others would rather them concentrate on expending opportunities for less advantaged would-be home buyers. Others want them completely privatized. We'll just have to wait and see. 

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