Senators Outline Plan to Replace Mortgage Giants
The Senate Banking Committee's top leaders want to wind down Fannie Mae and Freddie Mac and have private capital cover the first 10 percent of losses on mortgage-backed securities under a new U.S. housing finance system. The plan from Sens. Tim Johnson (D-S.D.) and Mike Crapo (R-Idaho) also would create an insurance fund, paid for by fees from the issuers of the securities, that would protect taxpayers against future bailouts. Moreover, underwriting standards would mandate a 5 percent down payment from borrowers -- but only 3.5 percent down for first-time home buyers. Industry fees would go toward a fund to ensure the availability of affordable housing. Johnson and Crapo plan to unveil the legislation in "the coming days."
From "Senators Outline Plan to Replace Mortgage Giants"
Washington Post (03/12/14) P. A13 ElBoghdady, Dina
The Senate Banking Committee's top leaders want to wind down Fannie Mae and Freddie Mac and have private capital cover the first 10 percent of losses on mortgage-backed securities under a new U.S. housing finance system. The plan from Sens. Tim Johnson (D-S.D.) and Mike Crapo (R-Idaho) also would create an insurance fund, paid for by fees from the issuers of the securities, that would protect taxpayers against future bailouts. Moreover, underwriting standards would mandate a 5 percent down payment from borrowers -- but only 3.5 percent down for first-time home buyers. Industry fees would go toward a fund to ensure the availability of affordable housing. Johnson and Crapo plan to unveil the legislation in "the coming days."
From "Senators Outline Plan to Replace Mortgage Giants"
Washington Post (03/12/14) P. A13 ElBoghdady, Dina
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