A Republican-backed measure to reform the U.S. housing marketwould eliminate Fannie Mae and Freddie Mac and replace them, inpart, with a non-government, not-for-profit entity.

According to an executive summary of the legislation announcedThursday, the “National Mortgage Market Utility would be regulatedby the Federal Housing Finance Administration, but would beforbidden from originating, servicing or guaranteeing any mortgagesor mortgage-backed securities.”

Instead the Utility would act as something like a referee forthe buying and selling of mortgages by developing standard-formmortgage agreements and guidelines for loan- level datadisclosures, the pooling and servicing of loans, representationsand warranties, indemnification and remedies and trusteeresponsibilities.

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