Mortgage Finance Act of 2011 Introduced

Sen. Johnny Isakson (R-Ga.) recently introduced “The Mortgage Finance Act of 2011” that would create the Mortgage Finance Agency (MFA) and eventually shut down Fannie Mae and Freddie Mac. The purpose of the new agency would be to deal with securitization of loans meeting the “qualified residential mortgage” standard developed by Senators Isakson, Kay Hagan (D-NC and Mary Landrieu (D-La.) for the Dodd-Frank Act. According to the legislation, Fannie and Freddie would cease operations over a 10-year period and the MFA would subsequently be privatized.