GSE reform could happen sooner than expected

Mortgage Professional America

The bill proposed by Blackburn would potentially end illegal acts being committed by the U.S. Tresury to sweep away capital from the housing finance system for deficit reduction. The bill is titled “Enterprise Secondary Reserve Taxpayer Protection and Government Accountability Act of 2015”.

“As top federal government officials have finally started to acknowledge, the undercapitalization of Fannie and Freddie threatens to put taxpayers on the hook for another bailout,” said Investors Unite Director Tim Pagliara. “This could have been avoided had the GSEs been allowed to keep their profits, as intended under the Housing and Economic Recovery Act. We urge Congress to move quickly to pass this legislation.”

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