New Bill to Abolish Fannie Mae and Freddie Mac With New Loan Structure

Thursday a new bill was presented to the U.S. House Financial Services Committee. It would do away with Freddie Mac and Fannie Mae in favor of a new housing loan structure bill. Rep. Maxine Waters (D) outlined a measure challenging the more conservative approach of Rep. Jeb Hensarling (R). The proposal will create a new lender-owned cooperative that would issue government-backed loans. The new plan includes government guarantees for home loans eligible to receive federal insurance.