GOP Introduces Bill To Dismantle Fannie, Freddie

Senate Republicans introduced legislation Thursday to dismantle the mortgage agencies Fannie Mae and Freddie Mac. The bill, from Sens. John McCain and Orrin Hatch, would phase out the agencies or privatize them over the next five years. Fannie and Freddie guarantee most mortgages in this country, and help lower borrowing costs.

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LINDA WERTHEIMER, host:

NPR's business news starts with Fannie and Freddie.

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WERTHEIMER: Senate Republicans introduced legislation yesterday to dismantle the mortgage agencies Fannie Mae and Freddie Mac. The bill, from Senators John McCain and Orrin Hatch, would phase out the agencies, or privatize them over the next five years. Fannie and Freddie guarantee most mortgages in this country, and help lower borrowing costs. But they nearly collapsed during the housing meltdown and remain under federal control.

Yesterday's bill is the latest by lawmakers who want to reduce government support of the housing market.

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