Republicans Unveil Fannie and Freddie Reform Package
Members of the House Financial Services Committee today unveiled a series of bills that would eventually wind down mortgage buyers Fannie Mae and Freddie Mac.
One measure would limit the size of Fannie’s and Freddie’s portfolios and increase the fees required for the companies to insure mortgages. One measure requires that the Treasury Department approve new debt issuances by Fannie and Freddie. Another measure would require employees of the mortgage buyers to be subject to the same pay scale as federal employees.
Another bill would repeal the affordable housing goals that Fannie and Freddie are supposed to meet as a result of legislation that Congress passed in the 1990s.
Last month, the Obama administration outlined a series of options for reducing the role of Fannie and Freddie in the housing market.
‘We will reform Fannie Mae and Freddie Mac by ending their government takeover, shrinking their portfolios, and establishing minimum capital standards,” Committee Chairman Spencer Bachus (R-Ala.) said in a statement.