July 1 - Legislation introduced by a bipartisan group of senators is meant to strengthen America’s housing finance system by replacing government-sponsored enterprises Fannie Mae and Freddie Mac with a privately capitalized system that is designed to preserve market liquidity and protect taxpayers from future economic downturns.
The group includes Sens. Bob Corker, R-Tenn., Mark Warner, D-Va., Mike Johanns, R-Neb., Jon Tester, D-Mont., Dean Heller, R-Nev., Heidi Heitkamp, D-N.D., Jerry Moran, R-Kan., and Kay Hagan, D-N.C., all members of the Senate Banking Committee.
“Five years after the financial crisis, it is past time for us to modernize our unstable system of housing finance,” said Corker. “The framework we’re presenting here will protect taxpayers while maintaining market liquidity, and is the best opportunity we’ll have to finally move beyond the failed GSE model of private gains and public losses.”
“Housing finance is the last piece of unfinished business remaining after the 2008 economic meltdown,” Warner said. “We have designed thoughtful reforms that will protect taxpayers from future downturns while responsibly preserving the availability of the 30-year fixed-rate mortgage for homebuyers.”
The Housing Finance Reform and Taxpayer Protection Act: