Mortgage Market Reform Includes New Insurance Fund
Their proposal for a reformed secondary mortgage market, released Tuesday, also envisioned credit unions and community banks sharing a “mutual cooperative jointly owned by small lenders” that would guarantee them access to the new secondary market.
The Johnson-Crapo agreement moves the secondary market reform effort one step closer to eventually passing Congress. The Senate has not yet produced a mortgage market reform proposal to match the one passed in the House of Representatives.
The House Financial Services Committee in July 2013 passed the "Protecting American Taxpayers and Homeowners Act,” a legislative proposal championed by the committee’s chairman, Rep. Jeb Hensarling (R-Texas).