WASHINGTON The Senate Banking Committee will vote Thursday on legislation to overhaul the housing finance system after abruptly postponing deliberations late last month.
The banking panel will consider legislation by Sens. Tim Johnson, D-S.D., the committee chairman, and Mike Crapo, R-Idaho, the ranking member, to unwind Fannie Mae and Freddie Mac and establish a new secondary market backed by an explicit guarantee in the case of catastrophic losses. Johnson and Crapo delayed the markup on April 29, citing ongoing efforts to bring additional lawmakers on board.
The plan, which draws on earlier work by Sens. Bob Corker, R-Tenn., and Mark Warner, D-Va., is expected to have enough support to pass out of the committee, but is not likely to gain the momentum needed to make it to the chamber floor this year. News broke last week that many of the uncommitted Democrats on the panel will not support the measure, despite the additional weeks of negotiations.