Representative Gary Miller (R-CA) introduced H.R. 2413, the Secondary Market Facility for Residential Mortgages Act of 2011, on July 6. The bill would end the conservatorship of Fannie Mae and Freddie Mac, the government sponsored enterprises (GSEs), and create a single secondary government-owned mortgage entity. The new entity would be limited to $250 billion in mortgage assets.
One of the eligible uses of the assets would be to support multifamily housing mortgages that are difficult to securitize in the private market. The bill would also require that two members of the board of directors governing the entity have considerable experience and expertise in multifamily housing mortgage finance, affordable housing development, and economic development and revitalization efforts.
The bill was referred to the House Committee on Financial Services and has one co-sponsor, Representative Carolyn McCarthy (D-NY).