Deals
Senators Considering Breaking Fannie-Freddie Into Pieces, Sources Say
- Corker and Warner plan could split off multifamily businesses
- Goal is to foster increased competition in mortgage market
Berkowitz Girds for Five-Year Fight Over Fannie, Freddie
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Two U.S. senators working on a bipartisan overhaul of Fannie Mae and Freddie Mac are seriously considering a plan that would break up the mortgage-finance giants, according to people with knowledge of the matter.
The proposal by Tennessee Republican Bob Corker and Virginia Democrat Mark Warner would attempt to foster competition in the secondary mortgage market, where loans are packaged into bonds and sold off to investors, said the people.