Fitzgerald Proposes 3 GSE Bills, Including Construction-Loan Securitization

1 articles · Updated · Bloomberg · Jun 25

A new House draft would require Fannie Mae and Freddie Mac to buy homebuilder construction loans and turn them into bonds, extending the GSEs deeper into housing finance.
The proposal aims to lower builders’ funding costs, a step supporters see as a way to spur more home construction and ease supply shortages.
Scott Fitzgerald, a Wisconsin Republican, filed the measure Thursday as one of three bills targeting reforms at the two government-sponsored enterprises.
The package marks another congressional push to use Fannie and Freddie more directly to address housing affordability through expanded financing channels.