Senator Corker discusses his bill to responsibly unwind government-sponsored enterprises Fannie Mae and Freddie Mac and end dependence on the government for housing finance. The Mortgage Market Privatization and Standardization Act would gradually reduce the portfolio of mortgage-related assets guaranteed by Fannie Mae and Freddie Mac and take steps to bring uniformity and transparency to the housing market so that private capital can begin to replace the GSEs. Taken into government conservatorship at the height of the 2008 financial crisis, Fannie Mae and Freddie Mac currently own or guarantee half of all mortgages in the United States, worth $5 trillion, and back 90 percent of all new home loans. The two firms combined have already cost taxpayers more than $150 billion.
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