Title: Study on Ending the Conservatorships of Fannie Mae and Freddie Mac
Vote Smart's Synopsis:
Vote to adopt an amendment to S Amdt 3739 to S 3217 that requires the Secretary of the Treasury to conduct a study of and develop recommendations regarding the options for ending the conservatorship of the Federal National Mortgage Association ("Fannie Mae") and the Federal Home Loan Mortgage Corporation ("Freddie Mac") in a way that minimizes the cost to taxpayers.
Requires the study to include an analysis of the following (Sec. 1077):
The role of the federal government in supporting a sustainable housing finance system;
To what extent the federal government, if any, should bear risks in meeting federal housing finance objectives;
How the current structure of the housing finance system can be improved;
How the housing finance system should support the continued availability of mortgage credit to all segments of the market;
How the housing finance system should be structured to ensure that consumers continue to have access to 30-year, fixed rate, pre-payable mortgages and other mortgage products that have simple terms that can be easily understood;
The role of the Federal Housing Administration and the Department of Veterans Affairs in a future housing system;
The impact of amendments to the housing finance system on the financing of rental housing;
The impact of amendments to the housing finance system on the secondary market liquidity;
The role of standardization in the housing finance system;
How the housing finance system in other countries offers insight that can assist the U.S. in amending it's housing finance system; and
The options for transition to an amended housing finance system.
Specifies that the recommendations may include, but are not limited to, the following options (Sec. 1077):
Gradual reduction and liquidation of Fannie Mae and Freddie Mac;
Privatization of Fannie Mae and Freddie Mac;
Incorporation of the functions of Fannie Mae and Freddie Mac into a federal agency;
Dissolution of Fannie Mae and Freddie Mac into smaller companies; and
Any other measure that the Secretary of the Treasury deems appropriate.
Requires the Secretary of the Treasury to submit the report and recommendations no later than January 31, 2011 to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services (Sec. 1077).