Fannie Mae And Freddie Mac Inch Closer To Privatization
Last week reports revealed an increase in shares for Fannie Mae and Freddie Mac with rumors of privatization circulating. Now, the process has taken another step forward as Congress gets ready to consider a proposal to privatize both government-sponsored enterprises.
"Senate Banking Committee Chairman Mike Crapo (R-ID) released an outline Friday for housing finance reform legislation," according to HousingWire.
"The outline incorporates elements of many plans and principles for housing finance reform legislation that have been discussed by legislators, analysts, stakeholders and thought leaders."
Crapo is leading the charge with a few goals in mind. With his outline, he revealed that his priorities include establishing "stronger levels of taxpayer protection, preserve the 30-year fixed-rate mortgage, increase competition among mortgage guarantors, promote access to affordable housing and more," according the report.
The report stated that the Mortgage Bankers Association, Federal Housing Administration and many more industry professionals are backing the proposal from Crapo and supporting the initiatives outlined within it.
To learn more about the proposal and hear more from those who are in support of GSE privatization, click on the image above.