Sen. Mike Crapo (R-Idaho) today outlined his plan for overhauling the housing finance system. Under the plan, Fannie Mae and Freddie Mac would become private guarantors that would be permitted to provide guarantees on eligible mortgages securitized by primary market participants. They also would be permitted to buy mortgages from the primary market through a cash window and guarantee and securitize them through a platform operated by Ginnie Mae.
The plan also calls for the Federal Housing Finance Agency to transition from being run by a single director to a bipartisan board of directors that would be responsible for chartering, regulating and supervising the system of private guarantors.
The American Bankers Association has long called for Congress to pursue a legislative solution to housing finance reform that provides liquidity for the housing market, protects taxpayers and maintains access for community banks. The association will continue to engage with lawmakers from both parties as plans for reform are advanced.