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» VISIT US ONLINE @ DSNEWS.COM 19 LEGISLATION INTRODUCED TO WIND DOWN FANNIE MAE, FREDDIE MAC e latest in a series of proposed GSE reforms was announced last month. Congressional Representatives John K. Delaney (D-Maryland), John Carney (D-Delaware), and Jim Himes (D-Connecticut) introduced housing finance reform legislation, aimed at winding down Fannie Mae and Freddie Mac and replacing them with a federally backed insurance program administered through Ginnie Mae. e Partnership to Strengthen Homeownership Act (H.R. 5055) mandates that the GSEs be reduced in scope over a five-year period. eir government guarantees and charters would be removed and they would "repay the government with interest for the government's investment in the institutions." While no figure for repayment is explicitly called for in the bill, congressmen say that it must take into account both the injection of capital and the overall exposure to the government. "America needs housing finance reform for the long-term health of the economy, the viability of the American Dream of homeownership, and the protection of the U.S. taxpayer. Congress has to act, and we are committed to keeping housing finance reform on the agenda," Congressman Delaney said. "We've seen what happens when the housing market becomes distorted and policy fails the public: hard-working Americans lose their homes, the economy slumps, and the taxpayer is left responsible," Delaney continued. "By maintaining a government guarantee, introducing private sector pricing, and increased taxpayer protections, our legislation can bring both sides of the aisle together." e bill also removes Ginnie Mae from the HUD umbrella and establishes it as an independent entity. e powers, personnel, and property of the Federal Housing Finance Agency (FHFA) would also be transferred to Ginnie Mae. e proposed legislation is a counterpart to a similar Senate proposal sponsored by Senators Tim Johnson (D-South Dakota) and Mike Crapo (R-Idaho). e Obama Administration, including the newly confirmed HUD secretary Julian Castro, is on record supporting an overhaul of the current GSE conservatorship model, but with the current political climate and the somewhat-fragile state of the housing recovery, housing analysts are dubious of any such reform legislation reaching the President's desk before the midterm elections in November and perhaps not before the Presidential elections of 2016. Specialty Services Premarket Services Compliance Oversight Due Diligence Vendor Management Closing Facilitation and Management Program and Inventory Marketing Services Sales and Homebuyer Education Property Preservation Property Management Real Estate Sales Facilities Maintenance Thirty, Thriving & Diving into New Markets Discover a complete list of solutions at PEMCO-Limited.com PEMCO Limited is celebrating 30 years in business! Recognized for results proven to maximize our client's assets, we operate with integrity o•ering quality, personalized solutions to government, private and individual clients.