A housing finance reform bill unveiled by House Republicans July 11 would wind downFannie Mae and Freddie Mac and also contains a number of regulatoryrelief provisions, including tweaks to the CFPB's qualifiedmortgage rule and exam reform.

The Protecting American Taxpayers and Homeowners Act, which hasnot yet been introduced but is championed by House FinancialServices Committee Chairman Jeb Hensarling (R-Texas), would replaceFannie Mae and Freddie Mac with a nongovernmental, not-for-profitentity. Both Fannie Mae and Freddie Mac would be eliminated withinfive years by shrinking their securities portfolio by 15% peryear.

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

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