WASHINGTON Sens. Bob Corker, R-Tenn., and Mark Warner, D-Va., are scheduled to introduce their highly anticipated bill to reform the mortgage finance system on Tuesday, a spokeswoman from Warners office confirmed Monday night.
The bill is expected to call for the unwinding of Fannie Mae and Freddie Mac to be replaced with a new system under which private market entities would purchase loans from originators, bundle them and provide credit guarantees, according to a discussion draft of the bill that leaked earlier this month. Private mortgage insurers would be in the first loss position, with the government providing a catastrophic backstop under a new agency, the Federal Mortgage Insurance Corporation.
The bill is expected to attract several cosponsors from both parties, including Sens. Jon Tester, D-Mont., and Mike Johanns, R-Neb., according to spokespeople from their offices.