Reps. Gary Miller (R-CA) and Carolyn McCarthy (D-NY) have announced the introduction of HR 2413, the "Secondary Market Facility for Residential Mortgage Act of 2011," a bill intended to reform the secondary mortgage market and provide the federal government with a continued role in ensuring a consistent flow of mortgage credit in all markets and all economic conditions. Reps. Miller and McCarthy are both members of the House Financial Services Committee.
HR 2413 seeks the dissoving of Fannie Mae and Freddie Mac into one entity that would have no shareholders and exclusively serve a national mission to facilitate the flow of mortgage capital and provide liquidity during all market conditions. HR 2413 spells out plans to protect taxpayers and ensure safety and soundness through appropriate regulation and underwriting standards.
"As the leading advocate for home ownership and housing issues, Realtors want a secondary mortgage market that will serve home owners today and in the future, as well as support a strong housing market and economic recovery," said Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. and president of the National Association of Realtors (NAR). "An efficient and affordable restructured mortgage finance system is in the best interest of taxpayers, and to accomplish that, Congress must enact comprehensive housing finance reform legislation."
Under HR 2413, a “secondary market facility” for residential mortgages would be formed that would purchase home loans, pool them into bonds, and insure their principal and interest payments.
"Realtors thank Reps. Miller and McCarthy for their dedication and work on this bill, and we look forward to working with Congress to ensure that comprehensive and effective housing finance reform legislation is enacted," said Phipps. "We must do this to preserve and strengthen the American dream for future generations."