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Fannie-Freddie Would Go Private in Senate Republican’s Plan (1)

Feb. 1, 2019, 6:33 PM

Senate Banking Committee Chairman Mike Crapo has released a plan for housing-finance legislation that would end U.S. control of Fannie Mae and Freddie Mac, the latest sign that Congress will try again to complete the last outstanding business of the 2008 credit crisis.

Under the plan outlined in a statement Feb. 1, Fannie and Freddie would survive as private mortgage guarantors, while facing new competitors and strict limits on capital and business lines. Crapo’s outline left blank many critical components that would be needed for actual legislation, including what level of capital the companies would be required to hold.

Still, ...