Housing Finance Reform Bill Introduced

Senator Johnny Isakson (R-GA) introduced legislation (S. 1048) that would revoke the charters of the government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac “upon resolution of their obligations” and would create a new mortgage finance agency to provide for the securitization of single-family and multi-family mortgages. If enacted, the legislation would place the GSEs into an irrevocable receivership status, with the Federal Housing Finance Agency designated as receiver. Once the GSEs are wound down, the new mortgage finance agency would take over the tasks of securitization tasks previously held by the GSEs. The agency will be funded by appropriations made by Congress, but the appropriations will be recouped with guarantee fees received. Senator Isakson also introduced the legislation in the 112th Congress but it was not acted on by the Senate. The bill has been referred to the Senate Committee on Banking, Housing, and Urban Affairs and has no co-sponsors as of this writing.