According to The Hill, Reps. John Delaney (Md.), John Carney (Del.), and Jim Himes (Conn.), introduced a bill that would wind down Fannie Mae and Freddie Mac and replace them with a new private capital system. The Partnership to Strengthen Homeownership Act would provide a government guarantee for mortgages, but would require a minimum of 5 percent private capital support. The remaining 95% of the risk would be shared through an insurance program established through Ginnie Mae and a private reinsurer, The Hill reported.
“We aren’t the first group to try to find a solution to reforming our housing finance system, but we think our proposal has promise because it strikes the necessary balance between public- and private-sector involvement in the housing market," Carney said.
Senate Banking Committee member Sen. Bob Corker (R-Tenn.) applauded the legistlation, praising the lawmakers for their "thoughtful and productive contribution of this important issue".
The National Association of Realtors also spoke in support of the legislation.
“The efforts that you have undertaken reflect a methodical, measured and comprehensive approach that is based on practical application and not just academic theory,” NAR president Steve Brown said.
A trio of House Democrats have introduced a bill to overhaul housing finance.