Senators introduce plan to dissolve Fannie Mae and Freddie Mac

[Geee]

Washington Examiner:

A bipartisan group of senators introduced a plan Tuesday to reform the housing finance system and wind down the government-sponsored enterprises Fannie Mae and Freddie Mac.

Eight members of the Senate Banking Committee, including both Republicans and Democrats, proposed creating a new agency modeled after the Federal Deposit Insurance Corporation to provide backstop insurance for mortgage-backed securities. The agency, which would be called the Federal Mortgage Insurance Corporation or FMIC, would be funded with premiums from private loan issuers. It would require investors to hold 10 cents for every dollar at risk, and only provide insurance payouts after a substantial amount of private capital was exhausted.

The plan would also dissolve mortgage buyers Fannie and Freddie over a period of years while the FMIC was adopted, and abolish the regulatory agency now responsible for overseeing the two mortgage giants currently being run by the federal government. In addition, it would include an expiration provision to end the FMIC in favor of a fully privatized system of housing finance after eight years, following a review process.

[Draggingtree]

Washington Examiner:

A bipartisan group of senators introduced a plan Tuesday to reform the housing finance system and wind down the government-sponsored enterprises Fannie Mae and Freddie Mac.

Eight members of the Senate Banking Committee, including both Republicans and Democrats, proposed creating a new agency modeled after the Federal Deposit Insurance Corporation to provide backstop insurance for mortgage-backed securities. The agency, which would be called the Federal Mortgage Insurance Corporation or FMIC, would be funded with premiums from private loan issuers. It would require investors to hold 10 cents for every dollar at risk, and only provide insurance payouts after a substantial amount of private capital was exhausted.

The plan would also dissolve mortgage buyers Fannie and Freddie over a period of years while the FMIC was adopted, and abolish the regulatory agency now responsible for overseeing the two mortgage giants currently being run by the federal government. In addition, it would include an expiration provision to end the FMIC in favor of a fully privatized system of housing finance after eight years, following a review process.

 

Well as long as Reid/Qbama/ & Ms.Botox are around it's not going to happen, Be serious government doesn’t cut it's self