If businessmen believe the government should take a backseat in most things business, they have a different take when it comes to the mortgage market. In fact, they feel that when it comes to mortgages, the government should have more involvement.

Last Tuesday, the Obama administration invited banking executives and asked them for advice regarding changing the government’s role in the mortgage market. Though they were in disagreement as to the level of support the government must extend, they were all in agreement that a large role must be maintained. After all, the mortgage market is worth $11 trillion.

The executives pointed out that if government decides to pull out of the mortgage market, banks will no longer take risks in granting Americans home loans. Doing so also heightens the risk of spiking mortgage rates. Less and less people will be encouraged to buy homes then banks and lenders will lose money.

Many of those present during the meeting agrees that it’s high time the government lets go of lenders Fannie Mae and Freddie Mac. Though not the sole cause of the financial crisis, both companies have contributed to worsening it. The government already shelled out $150 billion to rescue them.

A popular view amongst the businessman is to have the government do away with both Fannie Mae and Freddie Mac and instead formulate a plan that will surely get thumbs up from mortgage investors: sure payment even when a large number of borrowers default.

Fannie Mae and Freddie Mac have actually been a huge challenge to Obama and the party. Both companies have been criticized for burdening the taxpayers during the housing crisis, even as they made tremendous profits when the economy was faring well. Even with the market collapsing, both mortgage lenders were still able to provide home loans because they package mortgages into securities.

There are also suggestions about merging Fannie Mae and Freddie Mac with the government. -Treasury Secretary Timothy Geithner suggested that a change in structure should be made. He has not put forward a specific suggestion, but he reiterates that whatever is decided on should not be vulnerable to the same errors that worsened the housing crisis.

Others are also pushing for more dramatic actions. Automatic refinancing has been suggested. Obama officials, though, assure that this is not part of the plan as opposed to the buzz in Wall Street the past weeks.