A housing finance reform bill unveiled by House Republicans July 11 would wind down Fannie Mae and Freddie Mac and also contains a number of regulatory relief provisions, including tweaks to the CFPB’s qualified mortgage rule and exam reform.

The Protecting American Taxpayers and Homeowners Act, which has not yet been introduced but is championed by House Financial Services Committee Chairman Jeb Hensarling (R-Texas), would replace Fannie Mae and Freddie Mac with a nongovernmental, not-for-profit entity. Both Fannie Mae and Freddie Mac would be eliminated within five years by shrinking their securities portfolio by 15% per year.

The National Mortgage Market Utility proposed by the bill would be regulated by the Federal Housing Finance Administration, but unlike the GSEs, it would not guarantee mortgages. Instead, it would take over the current GSE origination platform and convert it into an “open access common securitization platform.”

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