Dems could delay Fannie Mae overhaul
WASHINGTON — Six Democrats whose support is crucial to a Senate plan to replace government-owned mortgage firms Fannie Mae and Freddie Mac have decided they will not support the proposal without major revisions, dimming its chances of becoming law.
The six senators held a private meeting on Thursday and agreed that they would not support the bipartisan bill, which would replace the finance companies with a government re-insurer, according to three people familiar with the meeting. A lack of Democratic consensus scuttled plans last week to approve the bill by the Senate Banking committee.
The bill would establish a Federal Mortgage Insurance Corporation to provide insurance for mortgage-backed securities. It would allow banks to be an aggregator, guarantor, securitizer and lender of mortgages.
The six senators — Chuck Schumer of New York, Sherrod Brown of Ohio, Jeff Merkley of Oregon, Robert Menendez of New Jersey, Elizabeth Warren of Massachusetts and Jack Reed of Rhode Island — agreed that the structure of the re-insurer seemed unworkable and the bill lacked sufficient support for affordable housing goals.
Senate Majority Leader Harry Reid has said the bill needs to attract more support from Democrats, who hold a slim majority in the chamber, before he will bring it to the Senate floor.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- New Navy destroyer Zumwalt’s seaworthiness questioned before sea trials
- Storm lingers in southern Plains
- Upstate New York town threatened by Arizona man in online post, reports say
- Hunt on for mother of baby buried alive in California
- Federal $1.1 trillion spending bill loaded with policy deals
- Colorado clinic shooting suspect talked of baby parts, police say
- Democrats face long odds in battle for lost congressional seats
- Suspect in Colorado attack called loner who left few clues
- Nation’s $1 billion defense against biological terrorism faulty, GAO watchdog warns
- Hawaii confronts dengue fever cases
- Disability claim waits grow alongside swelling caseloads for judges