Rep. Gary Miller (R-CA) introduced a bill on July 6 that would end the conservatorship of Fannie Mae and Freddie Mac, the government sponsored enterprises (GSEs) and would create a single new government-owned mortgage entity, which would be limited to $250 billion in mortgage assets.
The bill, H.R. 2413, the Secondary Market Facility for Residential Mortgages Act of 2011, proposes strengthening multi-family financing, which is difficult to securitize in the private market. The bill would require two members of the board of directors governing the new entity to have considerable experience and expertise in multifamily housing mortgage finance, affordable housing development, and economic development and revitalization efforts.
In February, the Obama Administration released a white paper outlining its intent to wind down Fannie Mae and Freddie Mac and curtail the Federal Housing Administration to help reduce the government’s role in mortgage financing.
Rep. Miller’s Bill is cosponsored by Rep. Carolyn McCarthy (D-NY).