WASHINGTON, DC-Despite President Barack Obama's andCongressional lawmakers' calls for the dismantling of GSEsFannie Mae and Freddie Mac, abipartisan group of U.S. senators writing reform legislation isstruggling with how to ensure that regulatory changes don't derailthe housing recovery.

Some Democratic lawmakers are saying they are leery ofliquidating the GSEs, leaving it to private entities to financehome loans, according to Bloomberg News.

“I'm not sure that eliminating the GSEs totally makes sense, assome have suggested, and so I have an open mind on it,”Sen. Robert Menendez of New Jersey, a Democraticmember of the Senate Banking Committee. Senate Majority LeaderHarry Reid, a Nevada Democrat, said in August that the companiesshouldn't be dismantled.

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John Jordan

John Jordan is a veteran journalist with 36 years of print and digital media experience.