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Market Updates

Roboform Re-do? It's Housing Reform Gone Wild...

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wildHouse Financial Services Committee Chairman Jeb Hensarling (R-TX) has introduced legislation to reform the U.S. housing market. The bill is co-sponsored by fellow Republicans Randy Neugebauer of Texas, Scott Garrett of New Jersey and Shelley Moore Capito of West Virginia. The bill comes on the heels of a Senate proposal that has garnered support from both Republicans and Democrats.

Here are some of the highlights from the House bill:

  • Unwinding Fannie and Freddie: Under the House bill, Fannie and Freddie would be unwound and eliminated in 5 years.
  • National Mortgage Market Utility: The legislation creates the NMMU, a voluntary securitization platform for loan originators, investors, aggregators, and security issuers.
  • Role of the NMMU: The NMMU is prohibited under the bill from originating, servicing or guaranteeing any mortgages or mortgage-backed securities.
  • Role of the Government: This housing reform proposal offers no government…

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