Residential Mortgage Securitization Update: GSE Reform Bill
Senators Bob Corker (R-TN) and Mark Warner (D-VA) have introduced a bi-partisan bill to reform the U.S. housing finance market. Entitled the “Housing Finance Reform and Taxpayer Protection Act of 2013” (the “Reform Bill” or the “Bill”), it would replace Fannie Mae and Freddie Mac, the two government-sponsored enterprises (“GSEs”) that currently dominate the U.S. housing financing market, with a new independent government agency. This agency, the Federal Mortgage Insurance Corporation (“FMIC”), would operate a Mortgage Insurance Fun (“MIF”)charged with providing a limited government-backed guarantee of qualifying privately issued residential mortgage-backed securitizations (“RMBS”).
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