Senate Banking Committee Chairman Tim Johnson (D-S.D.) and Ranking Member Mike Crapo (R-Idaho) released the text of their draft bill to reform the federal government's role in the housing finance system.
The legislation, which builds upon an earlier bill by Sens. Bob Corker (R-Tenn.) and Mark Warner (D-Va.), would eliminate Fannie Mae and Freddie Mac and replace them with a new entity -- the Federal Mortgage Insurance Corporation -- patterned after the FDIC.
The FMIC would provide a guarantee for eligible mortgages originated by the private sector. Mortgages would be packaged for the secondary market through private sector aggregators, guarantors, insurers and securitizers.
Read a detailed summary of the bill.
Read a section-by-section summary.
Read the legislative text.