In 1992 Congress enacted a bill to regulate Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac. Called the "Federal Housing Enterprises Financial Safety and Soundness Act" (the Safety and Soundness Act), its ostensible goal was to protect taxpayers.
Yet by 2008, the GSEs required a taxpayer bailout and the affordable housing mandates the bill contained had harmed millions of homeowners.
Last month Senators Bob Corker (R-TN) and Mark Warner (D-VA) introduced the "Housing Finance Reform and Taxpayer Protection Act of 2013" (the Taxpayer Protection Act), which also promises to protect taxpayers, but, like the Safety and Soundness Act, poses a danger to homeowners and taxpayers alike.
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