Senate Committee Outlines Fannie, Freddie Bill
Washington, DC, March 12, 2014 -- Senate banking committee leaders released the outline of a plan to dismantle mortgage giants Fannie Mae and Freddie Mac.
The mortgage giants buy loans from lenders and sell them to investors. They also insure mortgages, paying the investors should the loans go bad.
But the bill is not likely to go very far this year in advance of the midterm elections.
The idea would be to replace Fannie and Freddie with a new entity and put more of the mortgage risks on the private sector.