Bringing The World Home To You

© 2021 WUNC North Carolina Public Radio
120 Friday Center Dr
Chapel Hill, NC 27517
919.445.9150 | 800.962.9862
91.5 Chapel Hill 88.9 Manteo 90.9 Rocky Mount 91.1 Welcome 91.9 Fayetteville 90.5 Buxton
Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations
Politics

NC Congress Members Consider Bills To Dismantle Fannie & Freddie

Kay Hagan is co-sponsoring a new housing bill in the US Senate.
Kay Hagan
/

Some members of Congress from North Carolina are getting behind proposals to dismantle mortgage giants Fannie Mae and Freddie Mac. 

The companies got a $190 billion bailout during the housing crisis and were absorbed by the federal government.  Sen. Kay Hagan (D-NC)  is co-sponsoring a bipartisan bill that would gradually break down Fannie and Freddie in favor of a private reserve of mortgage funds.

"So as they wind down, there are provisions in this bill to ensure that institutions of all sizes -- not just the mega-banks, but local banks and credit unions -- will also have direct access to this secondary market so that you can get a mortgage in your local community," Hagan says.

Critics of that proposal say it gives too much access to large banks, which would lead to less competition and higher costs for people who want to buy a house.

The bill would transfer current regulators to a new agency that would provide emergency funds if the private sector can not support another housing crisis.  North Carolina Congressman Mel Watt was nominated to be the new leader of the Federal Housing Finance Agency earlier this year. Sen. Richard Burr (R-NC) was not available for comment.

The House is considering a similar bill from Republicans that would provide less of a government fallback during a potential crisis.

Related Stories
More Stories