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Editor: Stephen Clowney
Univ. of Kentucky College of Law

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Friday, June 28, 2013

The End of Fannie and Freddie?

Via Huffpost:

A bipartisan group of senators on Tuesday proposed an overhaul to the housing finance system that would gradually eliminate Fannie Mae and Freddie Mac, the two government-sponsored mortgage guarantee giants, and shift more mortgage and credit risk to the private sector.

Eight lawmakers from the Senate Banking Committee – four Democrats and four Republicans – said their legislation would protect taxpayers from bearing the costs of housing market downturns as occurred in the 2008 financial crisis when Fannie and Freddie were nationalized and bailed out with $187 billion in taxpayer-funded loans.

"All these years later, nothing has changed," said Sen. Bob Corker, R-Tenn., "It's time to end this failed model."

Steve Clowney

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