Hill bill would provide path toward ending Fannie Mae, Freddie Mac conservatorship

Legislation introduced by U.S. Rep. French Hill (R-AR) on Thursday would direct the Treasury Department to take steps to end the conservatorship of Fannie Mae and Freddie Mac, which are Government Sponsored Enterprises (GSEs).

The GSE Review and Reform Act, H.R. 5505, would direct the Treasury Department to study ending the conservatorship of Fannie Mae and Freddie Mac on an annual basis.

“There has been no progress toward moving these federally dependent GSEs out of the conservatorship,” Hill said. “My bill would force treasury to study this issue and present its recommendations to Congress at least once a year, creating engagement on the best path forward on housing finance reform to end taxpayer exposure and ensure access to mortgage credit for Americans.”

Hill’s legislation would amend the Consumer Financial Protection Act of 2010 to require that annual studies be reported to Congress on ending federal conservatory of the GSEs.

The Dodd-Frank Act, which was passed in the wake of the 2008 financial crisis that forced taxpayers to pay a $200 billion bailout, did not address housing policies administered through Fannie Mae and Freddie Mac that contributed to the financial crisis.

Aside from one study in 2011, the Obama administration has had limited engagement with Congress about ending the federal government’s eight-year conservatorship of Fannie Mae and Freddie Mac.