Banking Industry Has Connections to Shape Mortgage Overhaul
This month, the Senate Banking Committee is set to consider a bill to overhaul the mortgage finance system, most notably by getting rid of the government-owned mortgage giants Fannie Mae and Freddie Mac over five years.
That would significantly shift the risks of mortgages, as well as the entire mortgage market, away from the government and toward the private sector. And with a wealth of lobbying cash as well as connections with the bill’s crafters, the financial sector (including the insurance and banking industries) could play a serious role in shaping how those risks and rewards turn out in the final legislation.
Image: Sen. Mike Crapo at a Senate Banking Committee Hearing (Flickr/American Insurance Association).