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U.S. Senate Committee on Banking, Housing, and Urban Affairs
Senators launch effort to replace Fannie Mae and Freddie Mac
Senators launch effort to replace Fannie Mae and Freddie Mac

WASHINGTON — Nearly five years ago, the subprime meltdown triggered a huge taxpayer bailout of housing finance giants Fannie Mae and Freddie Mac. Now a bipartisan group of senators has launched the most comprehensive effort yet to clean up the mess and dramatically reduce the government's role in the mortgage market. Four Democrats and four Republicans want to shut down Fannie and Freddie over five years and replace them with a new government agency modeled on the Federal Deposit Insurance Corp. — one that would be funded by industry fees and play a much smaller role in guaranteeing mortgage debt. The new Federal Mortgage Insurance Corp. would grow gradually as the...

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