WASHINGTON (7/11/13, UPDATE 12:34 P.M. ET)--The chairman of the House Financial Services Committee, Rep. Jeb Hensarling (R-Texas), and others of the committee's leadership unveiled a bill today they say is intended to "create a sustainable housing finance system."
The Protecting American Taxpayers and Homeowners--or PATH--Act would:
- Phase out government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac within five years;
- Increase competition by ending the federal government's domination of the housing finance market; and
- Give consumers more choices in determining which mortgage product best suits their needs.
Hensarling also announced today the Financial Services Committee will meet on Thursday, July 18 to hold a hearing on the PATH Act.
On the Senate side last month, several senators co-sponsored bipartisan legislation that would wind down Fannie Mae and Freddie Mac and replace them with a new mortgage guarantor, the Federal Mortgage Insurance Corporation (FMIC).
It was introduced by Sens. Bob Corker (R-Tenn.), Mark Warner (D-Va.), Mike Johanns (R-Neb.), Jon Tester (D-Mont.), Dean Heller (R-Nev.), Heidi Heitkamp (D-N.D.), Jerry Moran (R-Kan.) and Kay Hagan (D-N.C.).