Fate of Fannie and Freddie in limbo

"We're just beginning to see some positive signs in the housing market, but we're not out of the woods yet and so we want to be careful," Barr said.

That recovery is at such a nascent stage that discussions include polar opposites, The Washington Post reported Thursday.

Fully nationalizing the two huge mortgage brokers that now own or insure more than half the mortgages in the United States is one option. Fully privatizing the firms that represent a $125 billion bailout investment is another option.

The Obama administration said plans on how to unwind from the Federal National Mortgage Association and the Federal Home Loan Mortgage Corp. would be forthcoming, but Barr said, "we've obviously had our hands are full."

With financial reform bills in development, the administration is also wary of having one more contentious issue making headlines, the Post said.

"They're busy, and it's hard and it's complicated and they're trying to put it off," said Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee.

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