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Friday, March 15, 2013

Bipartisan GSE Reform Bill Introduced

Sen. Bob Corker (R-Tenn.), along with three other Senate Banking Committee members, yesterday introduced a government-sponsored enterprise reform bill that would prohibit the government from using any increase in Fannie Mae and Freddie Mac’s guarantee fees to offset other government spending.

The legislation also would prevent the Treasury Department from selling its preferred shares in Fannie and Freddie without congressional approval and structural housing-finance reform. Sens. Mark Warner (D-Va.), David Vitter (R-La.) and Elizabeth Warren (D-Mass.) are original co-sponsors of the measure.

“The reality is that if Congress were to spend ‘g-fee’ revenue from the GSEs on other programs, reforming these mortgage behemoths would become nearly impossible,” Corker said in a press release.

“At the same time, if Treasury were to decide to sell its preferred share investment without Congress having first reformed our housing sector, we would just be returning to a time where gains are for private shareholders and losses are for taxpayers,” he said.

Read Corker's press release.

Read the bill.