The Obama administration today released its long-awaited proposal for overhauling the mortgage market, calling for gradually shutting down bailed-out Fannie Mae and Freddie Mac and reducing the government’s now huge role in housing finance.

The 32-page plan calls for phasing in an increase in the down payment requirement for loans guaranteed by Fannie and Freddie to 10%, while reducing the maximum size of mortgages they can back — a move that would affect Boston and other high-cost areas.

During the financial crisis, Congress boosted the limit on such loans to as much as $729,750. The administration said it supports letting the limit drop back to $625,500 as scheduled on Oct. 1.

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