US House takes a stab at Fannie-Freddie reform

Ten years after the U.S. government took control over mortgage giants Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC), House Financial Services Chairman Jeb Hensarling introduced a proposal that would essentially close down Fannie and Freddie and shift their roles to private companies and the government’s Ginnie Mae. Hensarling, a Texas Republican, is cosponsoring the bill with Maryland Democrat John Delaney. Hensarling’s proposal would replace Fannie and Freddie with private guarantors who would take on some of the credit risk from mortgage securities.

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Source: Seeking Alpha