Fannie Mae, Freddie Mac Bill Would Not Even Pass In Senate Committee

Senator Tim Johnson’s likely retirement and upcoming mid-term elections could pave way to guide Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) policy discussion, note Barclays analysts.

Stephen Kim and team at Barclays in their recent Equity Research report dated May 9, 2014, believe six Democrats in the Senate Banking Committee have decided to oppose the Johnson-Crapo bill.

Johnson-Crapo bill

U.S. Senators Tim Johnson and Mike Crapo made a new proposal in March for reforming the U.S. mortgage industry that generally falls in line with last year’s proposal from Bob Corker and Mark Warner. The proposal would...