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Fannie And Freddie: New Bill Establishes A Secondary Reserve To Protect Capital

Seeking Alpha, By David Sims

Taxpayers, homeowners, and stockholders of Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) have something to cheer about thanks to House Republican Marsha Blackburn. On Thursday, she sponsored a bill that would end the potentially illegal acts being committed by the U.S. Treasury to sweep away capital from our housing finance system for deficit reduction. The bill is titled ”Enterprise Secondary Reserve Taxpayer Protection and Government Accountability Act of 2015” and will be filed as HR 1673.

The stated purpose of the bill is to

“amend the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 to establish a secondary reserve fund for a housing enterprise under conservatorship to protect taxpayers against loss in the event of a housing downturn, and for other purposes.”

Read the full article: Fannie And Freddie: New Bill Establishes A Secondary Reserve To Protect Capital