U.S. Senators, Sens. Bob Corker (R-Tenn.) and Mark Warner (D-Va.), announced today, June 25, 2013, that they will  introduce a bill to eliminate the government controlled mortgage insurance giants, Fannie Mae and Freddie Mac.   The plan in its current form would replace these entities with a new government reinsurer, but the bill does not provide any detail what powers and duties the new entity would have.  Fannie Mae and Freddie Mac, were at the center of the “mortgage meltdown” and were placed into conservatorship as they neared bankruptcy during the 2008 financial crisis.

The 154 page bill proposes to close Washington, D.C.-based Fannie Mae and McLean, Va.-based Freddie Mac but retains a continuing government role to back mortgage lending and support consumer mortgage lending in the United States. According to the latest draft of the bill, Fannie Mae and Freddie Mac would be liquidated within 5 years and replaced by a Federal Mortgage Insurance Corp. to continue existing efforts to build a guidelines and lending programs able to help small lenders support single and multifamily loan guarantees.

If you are having difficulty with your mortgage lender, whether they are insured through Fannie Mae, Freddie Mac or and independent lender, contact the attorneys at Resnick & Moss, P.C. to help you make the right choices and achieve the best outcomes.   If you think that you may be facing foreclosure, or you have more than one mortgage on your home and cannot make your payments, please do not hesitate to call, Resnick & Moss, P.C.  (248) 642-5400 for a free telephone consultation.