Sustainable Homeownership Act

This bill changes the rules for Fannie Mae and Freddie Mac, the two federally chartered companies that buy home mortgages. It sets minimum private mortgage insurance levels for loans where the borrower puts down less than 20 percent, and it limits the mortgage assets each company may hold to 8 percent of its total assets or an amount set by federal officials. It changes how loan limits for these companies and for FHA loans are adjusted each year, requires the companies to transfer most single-family mortgage credit risk to private investors and insurers within 2 years, and sets a return-on-equity range above which extra earnings go to the Treasury. It also directs the Treasury to exercise and sell its stock warrants in the companies and requires steps to prepare the companies to leave federal conservatorship.

Full text and official record on Congress.gov

Sponsors

• Scott Fitzgerald Republican sponsor
• 0 cosponsors