Changes pitched for Fannie, Freddie
NEW YORK - The US Mortgage Bankers Association said yesterday it wants Congress to transform Fannie Mae and Freddie Mac into several smaller, privately held companies that would issue mortgage securities with a government guarantee.
The proposal would give successor entities to Fannie Mae and Freddie Mac the authority to create securities backed by certain types of mortgages.
Almost a year ago, the Federal Housing Financing Agency placed Fannie Mae and Freddie Mac into a conservatorship that gave the regulator power over their assets and operations. Since then, a debate has raged about how to restructure the lenders, which play a critical role in supplying financing for mortgages.
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