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Tuesday, March 18, 2014

Johnson, Crapo Release Housing Reform Bill Text

Senate Banking Committee Chairman Tim Johnson (D-S.D.) and Ranking Member Mike Crapo (R-Idaho) over the weekend 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.

ABA staff experts have worked extensively with the Senate Banking Committee and their initial review shows that the draft bill reflects many key ABA priorities for reform, including equitable access to the secondary market for banks of all sizes, key protections for the Federal Home Loan Bank System and its member/owners, and a reduced role of the federal government in housing finance overall.

We will continue to examine the bill and will provide additional analysis in the coming days.
Read a detailed summary of the bill.

Read a detailed summary of the bill.
Read a section-by-section summary.
Read the legislative text.