MHProNews.com has learned that legislation introduced in the Senate Thursday would create a process ending in the privatization of Fannie Mae and Freddie Mac. The remnants would be turned over to the private sector in a decade. The Mortgage Finance Act of 2011, sponsored by Sen. Johnny Isakson (R-Ga.), would also pay back taxpayers the funds used to place the two entities into conservatorship. “This legislation is a detailed roadmap to change the unsustainable course we’re on in which the American taxpayers have been bailing out the mortgage industry to the tune of hundreds of billions of dollars,” Isakson said in a press release. “My bill will shut down Fannie Mae and Freddie Mac through an orderly transition, and it will repay the taxpayers.” The bill would also create a new, self-funding catastrophic fund to protect taxpayers from having to bail out another housing collapse during the 10-year transition period before privatization. Sale proceeds would go to the general fund of the Treasury Department.
(Image Credit: Fannie Mae)
(Image Credit: Fannie Mae)