The Senate Banking Committee will meet later this month to mark up the draft of the bipartisan Johnson-Crapo housing finance reform legislation.
Last month, Sens. Tim Johnson (D-S.D.) and Mike Crapo (R-Idaho) introduced the legislation, which was based on a similar bill by Sens. Bob Corker (R-Tenn.) and Mark Warner (D-Va.).
The legislation provides for the wind-down of Fannie Mae and Freddie Mac and their replacement with a national mortgage utility, the Federal Mortgage Insurance Corp. The bill features a 10 percent first-loss provision and calls for down payments of 3.5 percent for all first-time home-buyers.
Johnson and Crapo’s legislation seeks to ensure access to the secondary mortgage market, to protect taxpayers from another bailout and to promote stable and efficient housing markets.
“It is critical that we vote on reforming our broken housing system,” Crapo said. “We have produced a strong, bipartisan product, and I look forward to working with my colleagues to move this legislation forward and end the five year-plus status quo.”
The markup will be held at 10 a.m. on Tuesday, April 29.