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June 21, 2013 – Sens. Bob Corker, R-Tenn., and Mark Warner, D-Va., plan to introduce their bill next week to wind down Fannie Mae and Freddie Mac over a five-year period and give private capital a larger role in the housing finance system.

Corker was quoted in Politico saying he reviewed the final text of the measure Wednesday. The package reportedly has been circulating among certain industry groups and within the administration.

A draft of the bill slated for introduction would close Fannie and Freddie in five years and replace them with a new Federal Mortgage Insurance Corp., which would back certain mortgage bonds issued by well-capitalized institutions. These institutions would be charged fees that FMIC would keep in a reserve account that would be tapped only after a large amount of private capital is exhausted in future downturns.

NAFCU lobbyists are closely monitoring progress on the housing finance reform issue. The association is urging that any housing finance reform plan ensure credit unions have continued, unfettered access to the secondary market for mortgage loans.