Senator Tim Johnson and Mike Crapo first introduced the bill in hopes of changing the way Americans buy their homes. The bill proposes to wind down government-sponsored enterprises Freddie Mac and Frannie Mae and replace them with a new government agency known as the Federal Mortgage Insurance Corporation (FMIC). The FMIC will act as a new federal regulator of the mortgage industry to be able to monitor the safety of several financial institutions. The new agency will also administer a special refund to cover losses on mortgage-backed securities.
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