Legislation proposing significant changes to Fannie Mae and Freddie Mac’s charters has been introduced in both the Senate and the House. The proposed reforms seek to reduce barriers to private investment as well as improve access to capital and reduce risk for US mortgage markets.

Specific reforms would increase the amounts in the enterprise capital surplus, allow direct capital access to the secondary market, provide access to credit for tenants, and provide more consumer financial protections. One of the bills also provides a pathway that may lead to Fannie Mae and Freddie Mac receiving a charter from the Federal Reserve. This could provide them with the regulatory certainty which would allow them to resume their key role in the mortgage market, and ensure access to mortgage financing and support to communities across the United States.

Key Proposed Reforms Include:
• Increase in enterprise capital surplus
• Direct capital access to the secondary market
• Access to credit for tenants
• Additional consumer financial protections
• A pathway to receive a charter from the Federal Reserve

You can read this full article at: https://www.housingwire.com/articles/lawmakers-introduce-bills-requiring-title-insurance-on-gse-backed-loans/(subscription required)

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