Senator Johnny Isakson (R-GA) introduced the Mortgage Finance Act, S. 495, which would revoke the charters of the government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac “upon resolution of their obligations.” It would also create a new mortgage finance agency to provide for the securitization of single-family and multifamily mortgages. The bill is similar to one Senator Isakson introduced in the last Congress, but was never taken up by the Senate Committee on Banking, Housing, and Urban Affairs (see Memo, 5/24/13).
The measure would place the GSEs into an irrevocable receivership status, with the Federal Housing Finance Agency designated as receiver. Once the GSEs were wound down, the new mortgage finance agency would take over the securitization tasks previously carried out by the GSEs. The agency would be funded by Congressional appropriations, but the appropriated funds would be recouped from guarantee fees received by the GSEs.
< /p> The bill was referred to the Senate Committee on Banking, Housing, and Urban Affairs. It had no original cosponsors.
The text of the bill is at https://www.congress.gov/114/bills/s495/BILLS-114s495is.pdf