§4602 Studies of effects of privatization of FNMA and FHLMC

Summary

Four officials — the Comptroller General, the Secretary of Housing and Urban Development, the Secretary of the Treasury, and the Director of the Congressional Budget Office — must each do a study and send it to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate by the end of the two-year period that began on October 28, 1992. Each study must look at whether to repeal the Federal charters of the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC), end any federal sponsorship, and let them operate as fully private companies. Each study must examine effects on laws and costs for the enterprises; the cost of capital; housing affordability and the cost of owning a home; competition in the private secondary mortgage market; whether the enterprises would need more capital; the market and liquidity for residential loans; and any other relevant factors. FNMA and FHLMC must give full and prompt access to books, records, and other information for these studies. The officials must consider the enterprises’ views, and the enterprises may also report directly to the same House and Senate committees with their own analysis.