New GSE Reform Bill Introduced By House 

House lawmakers have introduced another bipartisan measure to reform Fannie Mae and Freddie Mac.

The measure (HR 2413), sponsored by Reps. Gary Miller (R-CA) and Carolyn McCarthy (D-NY), would merge Fannie Mae and Freddie Mac into a single entity and restructure the company into a government-held corporation.

Under the proposal, the merged company would be authorized to purchase mortgages and sell them to investors as government-backed securities.

The nonprofit entity would have no shareholders—its operations would be funded by bank fees for the guarantee and investors would fund an insurance fund to cover catastrophic losses.

The measure does not address multifamily specifically.

The new legislation joins a growing list of government-sponsored enterprise reform proposals, including 15 House piecemeal bills, that address targeted
elements of winding down the GSEs, a Republican-sponsored measure (HR 1182) to completely privatize the housing system and a separate bipartisan measure (HR 1859) that would replace Fannie Mae and Freddie Mac with five chartered entities that would issue mortgage bonds backed by an explicit government guarantee.

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