Dive Brief:
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Three Democratic members of Congress last week introduced legislation that they said would protect the traditional, fixed-rate, 30-year mortgage and "wind down" Fannie Mae and Freddie Mac.
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In a press release, Reps. John Delaney of Maryland, John Carney of Delaware, and Jim Himes of Connecticut said their Partnership to Strengthen Homeownership Act would shield taxpayers from future bailouts.
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“This proposal seeks to preserve housing affordability while protecting taxpayers from another bailout," Carney said in the release. “It finds the middle ground between public sector and private sector involvement in the housing sector. If we to want to preserve the dream of home ownership and make sure taxpayers aren’t on the hook for another bailout -- the status quo has to change.”
Dive Insight:
Various members of Congress have failed to move housing finance reform, including proposals to restructure or sell Fannie Mae and Freddie Mac, through the legislative process in recent years. This new proposal, however, contains some elements of proposals from last year that won considerable support in Congress.