The Obama administration is considering reducing government support for the mortgage market to below 50 percent over time, according to sources familiar with a White House proposal to revamp the housing finance system.

The administration is under pressure to figure out what to do with Fannie Mae and Freddie Mac , the government-controlled companies that provide liquidity to the mortgage market by buying mortgages from lenders and repackaging them as securities.

Key housing officials are due to meet at the White House later on Tuesday to sign off on the long-awaited proposal to overhaul the housing finance system, the sources said.

The sources requested anonymity because the proposal has not been made public and could still change. A Treasury spokesman declined to comment because the report has not been released yet.

(Reporting by Margaret Chadbourn, Corbett Daly, Rachelle Younglai; Editing by James Dalgleish)

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