- Politicians on both sides recently agreed to abandon proposals to shut down Fannie/Freddie.
- Fannie and Freddie purchase mortgages from banks, puts them in trusts, then sells mortgage backed securities (MBS) to investors.
- Senators Bob Corker (R-TN) and Mark Warner (D-VA) are spearheading plans (to be released early 2018) to restructure the government-sponsored entities (GSEs) by letting them issue gov’t-guaranteed mortgage securities.
- The plan also calls for keeping GSEs under gov’t control until viable private competition emerges.
