July 6th, 2011 6:22 PM by Lehel S.
Bill proposes merger of Fannie and FreddieRep. Gary G. Miller (CA-42) and Rep. Carolyn McCarthy (NY-04) are expected to introduce a bill tomorrow to merge Fannie Mae and Freddie Mac, and restructure the company into a government-held corporation.
The legislation will propose that the merged company purchase mortgages and sell them to investors as securities that are government-backed. The new company wouldn't operate for profit-making purposes and wouldn't have shareholders.
Under the proposal, a five-member board would govern the corporation, and it would be regulated by the Federal Housing Finance Agency, which would ensure that its market share didn't exceed 50 percent of the mortgage market.