Leaked Draft Housing Finance Reform Legislation by Senators Bob Corker (R-TN) and Mark Warner (D-VA).
In February 2018, a draft housing finance reform proposal being developed by Senators Bob Corker (R-TN) and Mark Warner (D-VA) began circulating in Washington. Corker’s and Warner’s offices confirmed the leaked draft’s authenticity but stressed that it did not reflect recent changes they have made to the legislation. The proposal would wind down Fannie Mae and Freddie Mac and establish a system with multiple private entity guarantors that would apply to the Federal Housing Finance Agency (FHFA) for approval to purchase government insurance for qualified single-family and multifamily mortgage-backed securities (MBS) from Ginnie Mae. The Ginnie Mae insurance would be largely the same as the insurance it currently provides on MBS comprised of federal program loans.