This February, the Obama Administration (Administration) released its report "Reforming America's Housing Finance Market" (Report) and laying out its proposed roadmap for the future of America's housing finance market. During the same period, various legislative proposals were introduced, largely sponsored by Republicans calling for the dissolution and/or privatization of both Fannie Mae and Freddie Mac (Enterprises). Currently pending in Congress are legislative proposal to privatize (H.R. 1859; H.R. 1182), wind down (S. 693), and eliminate (H.R. 1224) any governmental affiliation with the Enterprises. Other pending legislation would increase the guarantee fees that the Enterprises charge for mortgage-backed securities (H.R. 1222), and would eliminate the beneficial treatment that Enterprise securities enjoyed under the Securities and Exchange Act (H.R. 1223).
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Reprinted with permission from Thomson Reuters. ©2011. This article was originally published by Thomson Reuters at www.accelus.thomsonreuters.com.