Legislative Proposals to Reform the GSEs


Two bills have emerged as dueling proposals to reform the GSEs: the Housing Finance Reform and Taxpayer Reform Act (the “Corker-Warner Bill”) in the Senate, and the Protecting American Taxpayers and Homeowners Act of 2013 (“PATH Act”) in the House. The key thrust of both bills is to protect taxpayers from absorbing losses in the secondary mortgage market. Although the bills remain in committee as t hey gain traction in both chambers, any final legislation will likely have features of each proposal. A high-level summary of the bills follows.

The Corker-Warner Bill -

Federal Mortgage Insurance Corporation (“FMIC”): Modeled after the FDIC, this agency would replace the GSEs within 5 years. The FMIC would provide a catastrophic guarantee to investors through the mortgage insurance fund it would administer.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Goodwin Procter LLP | Attorney Advertising

Written by:


Goodwin Procter LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.