Sen. Proposes Replacement For Battered Fannie, Freddie

Law360, New York (December 8, 2011, 3:21 PM EST) -- A Senate Republican on Thursday proposed a new corporation that would take the place of Fannie Mae and Freddie Mac, the latest competing proposal to unwind the government-backed financing entities' role in the mortgage markets.

Under a measure introduced by Sen. Johnny Isakson, R-Ga., a new, temporary agency would guarantee home loans for a fee, but would not buy or securitize them, carving out a far more limited role for the federal government in the nation's housing finance market.

The measure comes amid rising pressure from...
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