Lawmakers are starting to wrestle with how to replace Fannie Mae and Freddie Mac, the mortgage giants that nearly collapsed at the start of the financial meltdown.

In September 2008, the government seized control of Fannie and Freddie — massive companies that purchase home loans, package them into investments and guarantee them against default. Since then, the government has pumped a combined $126 billion into the companies to keep them afloat.

House lawmakers Tuesday took tentative steps toward figuring out what to do next, holding their first hearing about how to restructure the mortgage system in the wake of the financial crisis. For the time being, the market is still resting on three government pillars: Fannie, Freddie and the Federal Housing Administration.

Last year, the two companies backed about 70 percent of all home loans, according to Inside Mortgage Finance, a trade publication. The duo also manage the Obama administration’s $75 billion loan modification program.

Rep Barney Frank, D-Mass., chairman of the House Financial Services Committee, said there is consensus about replacing Fannie and Freddie, but little agreement on what should take their place.  More….

If you have been thinking about it well now is the time. Right before the government cuts off the additional funding that is helping to keep rates low. Without a re-newed commitment from the Fed some analysts are expecting rates to rise.

This week the average rate on a 15-year fixed rate mortgage was 4.32%, down .01% from last weeks rate according to Freddie Mac.

So call your lender and have your loan papers ready to go. These rates will be gone soon.