GOP legislation aimed at Freddie Mac, Fannie Mae overhaul

The GOP today launched another attempt at remaking Fannie Mae and Freddie Mac.

House Financial Services Committee Republicans unveiled a second round of legislation to reform those government-sponsored enterprises.

Rep. Scott Garrett, (R-NJ), chairman of the House Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, said in a release that both of those organizations are unsustainable in their current form.

“We can no longer afford to sit back and allow the ongoing bailout of these failed institutions to continue,” Garrett said.  “While special interest groups and the guardians of the status quo may not want to admit it, Fannie and Freddie’s days are numbered.  It’s not a matter of if, but when – the quicker we begin the process of dismantling them the better off we’ll be.”

The GOP introduced seven bills. 

Prevent Dividend Payment Decrease

Rep. Don Manzullo (R-IL) is the lead sponsor of legislation to prevent the Treasury Department from lowering the 10% dividend payment Fannie Mae and Freddie Mac pay to American taxpayers.

Subject Fannie and Freddie to FOIA

Rep. Jason Chaffetz (R-UT) has introduced H.R. 463, the Fannie Mae and Freddie Mac Transparency Act of 2011, which would apply the freedom of Information Act (FOIA) to Fannie Mae and Freddie Mac while the entities are in conservatorship or receivership.

 Require Disposition of Non-Mission Critical Assets

Rep. Robert Hurt (R-VA) is the lead sponsor of legislation to require Fannie Mae and Freddie Mac to dispose of all non-mission critical assets.

Set a Bailout Cap for the GSEs

Rep. Michael Fitzpatrick (R-PA) is the lead sponsor of legislation to set a total dollar cap for the amount of money to be used for the bailout of Fannie Mae and Freddie Mac.

Ensure an Exact GSE Replica is not Created

Rep. Steve Stivers (R-OH) is the lead sponsor of legislation to ensure that new quasi-governmental replicas are not crated to replace Fannie Mae and Freddie Mac

Prohibit Taxpayer Funding of GSE Employee Legal Fees

Rep. Randy Neugebauer (R-TX), Chairman of the Financial Services Subcommittee on Oversight and Investigations, is the lead sponsor of legislation to prohibit taxpayer funding of Fannie Mae and Freddie Mac employee legal fees.

Abolish Affordable Housing Trust Fund

Rep. Ed Royce (R-CA) is the lead sponsor of legislation to abolish the Affordable Housing Trust Fund. GOP legislation aimed at Freddie Mac, Fannie Mae overhaul