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Daily Real Estate News  |  March 29, 2011  |   8 Bills to Chip Away at Fannie, Freddie
House Republicans plan to introduce eight bills on Tuesday in what some are calling a “bite-sized approach” to phasing out government-sponsored enterprises Fannie Mae and Freddie Mac, the Associated Press reports.

Fannie and Freddie, along with other federal agencies, have backed about 9 in 10 new mortgages over the past year. The federal takeover of the GSEs in 2008 following the housing market collapse has cost taxpayers $150 billion, which has prompted many in Congress and even the White House to call for the GSEs to be phased out gradually over a five-year timeline.

Earlier this month, Rep. Jeb Hensarling, R-Texas, a member of the House GOP leadership, took the first shot by introducing a wide-ranging bill to end the government's ownership of Fannie and Freddie in two years, either phasing them out completely or making them fully private companies within five years. However, experts say that the bill has little chance of surviving the Democratic-run Senate.

The eight smaller bills would include many of Hensarling’s proposals but by taking a “bite-sized approach” may have a better shot at weaving its way through Congress, aides and lobbyists told The Associated Press. The proposals are also expected to include a gradual increase in Fannie’s and Freddie’s fees as well as reduce the size of loans they’ll be able to back.

Source: “GOP Introducing Bite-Sized Bills to Phase Out Fannie Mae, Freddie Mac in Strategic Shift,” The Associated Press (March 28, 2011)

Read more:
NAR’s Position on GSE Reform

NAR: GSE Structures Must Protect Taxpayers and Ensure Mortgage Availability

Sign up for a free upcoming webinar on March 31, 2011, from REALTORŪ Magazine -- GSE Reform: The Issues That Will Impact Your Business

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