§4602 Studies of Effects of Privatization of Fnma and Fhlmc

Summary

Four federal 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 write and send a study 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 no later than two years after October 28, 1992. Each study must look at whether to end the federal charters and any federal support for the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC) and let them become fully private companies. Each study must examine things like legal requirements and costs; the companies’ cost of capital; housing affordability and the cost of owning a home; how much private competition would exist in the secondary mortgage market; whether the companies would need more capital; loan market liquidity; and any other factors the study authors find important. FNMA and FHLMC must give full and prompt access to books, records, and other information for the studies. The agencies doing the studies must consider FNMA’s and FHLMC’s views, and FNMA and FHLMC may also send their own reports directly to the same House and Senate committees.