Ginnie Mae buys the federally guaranteed mortgages. Freddie and Fannie buy mortgages that aren't federally guaranteed. Regardless, this Baker guy wants us to pay off the mortgages of people who don't even have government-backed loans, meaning additional billions on top of what we're already on the hook for. No way in hell that's gonna happen.
When you're making plans, one of the things you have to take into account is the facts on the ground.
This is especially true when you are dealing with what economists call "market failures."
For example, there was no real free market solution to the Great Flood of 1927. The Army Corps of Engineers had to build levees all up and down the Mississippi River.
Similarly, there is no real free market solution to the aftermath of Hurricane Katrina.
Buying up properties in what should be wetlands and scraping the land clean and prohibiting rebuilding -- that's not a free market solution.