Government officials and finance executives are set to meet on Tuesday to possibly discuss the resolution of the nation’s housing market industry, which alarmingly emitted signals of reverting to its troubled state two years ago.

Many would recall that in 2008, Fannie Mae and Freddie Mac became household names not because they facilitated the acquisition of volumes of American homes but because they represented the housing market ills which saw the collapse of the industry as thousands of homes were foreclosed while the two companies ran to the federal government begging for succor.

They got the reprieve that they sought for and with government guarantees, the industry was afforded a shot in the arm as sales raced back to normal levels thanks to federal tax credits and affordable mortgage rates, home-buyers were convinced to put their stake back in the property market.

Yet that could be ending after the Tuesday meet as housing policy-makers endeavor to lend some semblance of normalcy on the industry long dominated by Fannie and Freddie, which admittedly provided the buffer zone for up to 90 percent of new housing loans.

That comfort zone, of course, was laid out with considerable assistance from the Federal Housing Administration, characterized by industry consultant Howard Glaser as a semi-permanent housing crisis with some little helpings from the big brother feds.

That role has been quite effective for some time now but something previously feared simply just happened: home sales tumbled after the April lapse of home-buyers tax rebates, and not to mention that mortgage rates then were being held at record lows.

Denver, Minneapolis and Milwaukee markets all posted remarkable declines in home sales that analysts could only explain that a persistent problem has reared its ugliest head the second time, which never went away anyway during the first time.

Efforts by property industry and federal officials to address the problem by mortgages modification seemed to have accomplished nothing but to delay foreclosure incidents from rattling the market, which is short of saying that federal intervention has so far failed in its goal.

Amherst Securities Group’ Laurie Goodman flatly said that the government have yet to find the right solutions for the ever-present problem, warning that “we have another round of home prices going down a little more.”

However, the Tuesday meet could bring about some better answers for the lingering issue that nags the industry as market veterans, economists and the academe converge to offer, discuss and maybe formulate a lasting solution for the housing market woes.

Reports are ripe that the government is bent on ditching the Fannie and Freddie ownership model, which were not too coy on exploiting their implied government guarantee by gobbling cheap loans, with investors comforted by the idea that the feds would come to the rescue once trouble brews.

On the other hand, the academe floated the idea that the government must not totally withdraw its guarantee on mortgages that could meet pre-agreed standards, which got the nod of Treasury Secretary Timothy Geithner who agreed that government guarantee must allow deserving individuals to still acquire properties even when times are hard.

The issue now is how to reconcile the two goals of bringing back the private sector to the forefront of absorbing credit risk while the government withdraws considerable presence but with enough guarantees to maintain a stable market and finally shielding the nation’s taxpayers from unnecessary bleeding too much cash.