Representative John Campbell (R-CA) and Representative Gary Peters (D-MI) introduced HR 1859, The Housing Finance Reform Act of 2011, that would replace the government-sponsored enterprises, Fannie Mae and Freddie Mac, with private firms that would issue federally guaranteed mortgage-backed securities.
“This is a reasonable, bipartisan approach to achieving two key goals: putting an end to taxpayer-funded bailouts and ensuring that responsible, middle class families can still achieve the dream of homeownership…” said Representative Gary Peters.
According to the Wall Street Journal, “critics say the hybrid model risks recreating the same dynamics that led Fannie and Freddie to use their government ties to take risks that cost taxpayers.”
For detailed information on the legislation:
