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Code · BILL · 114th Congress · S. 495 (Introduced in Senate) — To revoke the charters for the Federal National Mortgage Corporation and the Federal Home Loan Mortgage Corporation u... · Sec. 1

Sec. 1. Short title; findings

210 words·~1 min read·/bill/114/s/495/is/section-1·

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This Act may be cited as the . Mortgage Finance Act of 2015 Congress finds that— dependable, transparent, and liquid primary and secondary markets for high-quality residential and multifamily mortgages are critical to a safe and sound housing market; Congress wishes to terminate the Congressional charters and operations of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, and to wind them down through an orderly receivership process, without disrupting the housing markets; taxpayers have expended billions of dollars on behalf of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation during the period of their conservatorship, and such expenditures should be recouped; increased participation by the private sector to provide mortgage market liquidity and credit risk mitigation is necessary and desirable to reduce dependence on Government guarantees, and to make remote any future needs for taxpayer assistance; this Act creates a new transitional facility to guarantee securitizations of high-quality residential mortgages, to ensure a sound and stable housing market; multiple layers of private capital and the creation of an industry-funded Catastrophic Fund will make future risk to taxpayers highly remote; and this Act provides for the privatization of the transitional facility after 10 years, with proceeds being paid to the United States Treasury.
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