PIMCO Joins Chorus Against Fannie Mae, Freddie Mac Wind-Down Plan

PIMCO’s new CEO Douglas Hodge points out that the Johnson-Crapo bill lacks protection for investors who play a critical role in financing the mortgage market.

The legislation proposed by Johnson and Crapo is widely seen as President Obama’s favorite plan to reform the U.S. housing market.

Johnson-Crapo bill

Last month, US Senators Tim Johnson (D., S.D.) and Mike Crapo (R., Idaho) made a new proposal for reforming the US mortgage industry that falls in line with last year’s proposal from Bob...