Fannie Mae, Freddie Mac Wind-Down: New Group Wants Investors Protected
- April 8, 2014
April 8, 2014
A new organization is in favor of winding down Fannie Mae / Federal National Mortgage Association (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) without harming the shareholders of the bailed-out mortgage companies.
The new tax-exempt group calling itself the Coalition for Mortgage Security joins a few other groups that have sprung forward to defend shareholders.
Last month, US Senators Tim Johnson (D., S.D.) and Mike Crapo (R., Idaho) made a new proposal for reforming the US mortgage industry that falls in line with last year’s proposal from Bob Corker (R., Tenn.) and Mark Warner (D., Va.), but getting bipartisan support could be a major problem.
The proposal would set up a system of private companies that release a common security, much like Fannie Mae / Federal National Mortgage Association (OTCBB:FNMA) / and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) sell securitized mortgages under the current system.