U.S. Senator Bob Corker (R-Tenn.), a member of the Senate Banking Committee, today applauded the Federal Housing Finance Authority (FHFA) for requesting input to transition Fannie Mae and Freddie Mac to a single security platform, an idea championed in housing finance reform legislation introduced by Corker and Senator Mark Warner (D-Va.), along with Senators Mike Johanns (R-Neb.), Jon Tester (D-Mont.), Dean Heller (R-Nev.), Heidi Heitkamp (D-N.D.), Jerry Moran (R-Kan.), Kay Hagan (D-N.C.), Mark Kirk (R-Ill.) and Joe Manchin (D-W.V.).
"I applaud this effort taken by the FHFA to begin moving our housing finance system away from a behemoth government-sanctioned duopoly to a system that allows competition and protects taxpayers from future economic downturns, which is the cornerstone of the bipartisan bill we passed out of the Senate Banking Committee in May," said Senator Corker. "Allowing new entrants to securitize and deliver mortgages into a single TBA security is a critical step toward moving our economy beyond the legal limbo of conservatorship for Fannie Mae and Freddie Mac."
On May 15, the Senate Banking Committee passed the Housing Finance Reform and Taxpayer Protection Act (S.1217) in a 13-9 bipartisan vote.
In 2008, Fannie Mae and Freddie Mac were taken into government conservatorship and given a $188 billion capital injection from taxpayers to stay afloat. As a result of this bailout, the private market has almost completely disappeared, and so nearly every loan made in America today comes with a full government guarantee. Despite this unsustainable situation, Congress still has not reformed our housing finance system since the financial crisis.