Senate panel to discuss winding down Fannie and Freddie

|About: Fannie Mae (FNMA)|By:, SA News Editor

The Senate Banking Committee is due to meet today to discuss replacing Fannie Mae (FNMA) and Freddie Mac (FMCC) with an agency that will offer a government mortgage guarantee but only after private interests have absorbed big losses.

However, the agency would still preserve the 30-year fixed rate loans that are at the center of the mortgage system.

The 22-member panel is expected to approve the proposals, although supporters want at least 16 votes so they can pressure for a ballot on the Senate floor.