Mortgage

Panel to release proposal limiting government role in mortgage market

A bipartisan panel featuring former secretaries of the U.S. Department of Housing and Urban Development as well as former Senators will release a proposal on February 25 for scaling back the government role and the mortgage industry. 

The bipartisan policy center will release the blueprint in an attempt to jumpstart discussions over shrinking the government role in the $9.5 trillion mortgage finance market. 

The panel will recommend that the U.S. replace Fannie Mae and Freddie Mac, which package loans into securities with guaranteed interest and principal payments, with mortgage-bond guarantees that kick in only after private firms take the initial losses, according to the people, who asked not to be identified because the report isn’t yet published.

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