Senators to Introduce Bill to End Fannie Mae, Freddie Mac

[Purveyor]

By Cheyenne Hopkins - Jun 25, 2013

A bipartisan group of senators is planning to introduce a proposal today for replacing U.S.-owned mortgage financiers Fannie Mae (FNMA) and Freddie Mac (FMCC) with a newly created government reinsurer.

The bill to be offered by Senators Bob Corker and Mark Warner reflects a prevailing view among lawmakers that the two government-sponsored enterprises should cease to exist while a federal role in backing mortgage lending should remain. Corker, a Tennessee Republican, and Warner, a Virginia Democrat, have set a news conference for 2:15 p.m. to introduce the measure.

The senators have revised the proposal from an earlier version to reduce the losses that lenders would take on bad mortgages during a financial crisis, according to a draft copy of the revised 154-page bill that was obtained yesterday.

“There is a bipartisan effort here that’s thoughtful and it is without question the most thorough Congressional effort to draft a GSE reform legislation to date,” David Stevens, president and chief executive officers of the Mortgage Bankers Association, said in an interview.

The proposal could restart a stalled debate over the future of the U.S. mortgage-finance system. Congress has yet to propose a measure for replacing Fannie Mae and Freddie Mac, which have operated under U.S. conservatorship since they were seized by regulators during the 2008 credit crisis. President Barack Obama’s administration also hasn’t provided a plan for revamping the government’s role in housing finance.

‘Uphill Fight’

MORE...

http://www.bloomberg.com/news/2013-06-24/senators-to-introduce-bill-to-end-fannie-mae-freddie-mac.html

[dixiegrrrrl]

1. "an earlier version to reduce the losses that lenders would take on bad mortgages"

pretty much all I need to know about intention.
Obviously reducing the banks loss means making up the loss by getting the money from the taxpayers.

[davidn3600]

3. Now you didnt really think the motivation was to help the people, did you?

You know better than that!

[hughee99]

2. If they roll it into the federal government instead of keeping them separate entities,

I suspect they'll find it easier to obscure how much it costs the taxpayers to support the very same banks that nearly destroyed the global economy and are constantly screwing their own customers (the very same taxpayers) at every turn.