Fannie-Freddie Plan Unveiled as House Takes Fresh Stab at Reform
- Jeb Hensarling wants to replace firms with private backstops
- Latest proposal faces long odds to passing a busy Congress
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It’s been 10 years since the U.S. government took control of mortgage giants Fannie Mae and Freddie Mac during the depths of the financial crisis -- an anniversary some lawmakers used to promote their plans for overhauling the nation’s housing-finance system.
House Financial Services Chairman Jeb Hensarling unveiled a proposal Thursday that would effectively shutter Fannie and Freddie. Their roles would be replaced by enabling private companies and Ginnie Mae to backstop the trillions of dollars of mortgage-securities that underpin the U.S. housing market. Ginnie is a government corporation that guarantees mortgage bonds.