Republicans in the U.S. Senate on Wednesday introduced legislation to create a new federal regulator with the authority to close mortgage funders Fannie Mae and Freddie Mac.
The legislation is aimed at creating a substantially stronger regulator for the government-sponsored entities, and cutting the ties Wall Street sees as linking the companies to the government. Fannie Mae and Freddie Mac are the No. 1 and No. 2 U.S. mortgage finance companies.
The proposal would give the regulator the power to approve new programs and products proposed by Fannie Mae and Freddie Mac, as well as Federal Home Loan Banks, another GSE and the largest collective source of home mortgages in the United States.
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