Sponsor
Scott Fitzgerald
Representative · R-WI
Representative · R-WI
The bill shifts more mortgage risk and governance back toward private capital and tighter enterprise rules to protect taxpayers and stabilize the market, but does so at the cost of higher costs for some borrowers, greater complexity for lenders, and risks of short‑term market disruption or taxpayer loss if private protections or sales occur at inopportune times.
Taxpayers and the broader housing market face materially lower government loss exposure because the bill limits the enterprises' balance-sheet risk, strengthens allowable capital components, requires greater private risk-taking, preserves Treasury backstops, and enables Treasury to convert and sell shares to recoup funds.
Homeowners and mortgage markets gain clearer paths to an orderly end to conservatorship and more predictable market functioning via defined capital standards, exit mechanics (conversion/sales), annual reporting to Congress, and maintained liquidity lines.
Some borrowers—including those eligible for targeted refinancing—and buyers in high‑cost areas could get better access to credit because of a refinance exception, changes that may raise conforming loan limits in some markets, and more risk-sensitive pricing that favors safer borrowers.
Borrowers seeking high‑loan‑to‑value mortgages (especially low‑down‑payment buyers) are likely to face higher upfront costs or reduced availability because of stricter private‑insurance/guarantee requirements, risk transfers that raise guarantee fees, and other fee changes.
Smaller lenders, servicers, and some borrowers may face significant operational and compliance burdens from new look‑back/refinance rules, risk‑sensitive capital and CRT requirements, and other complex implementation deadlines, which could reduce lending to higher‑risk or smaller borrowers.
Giving FHFA broad discretion to recognize varied capital instruments risks understating true enterprise risk and reducing transparency if complex or nontraditional instruments are counted as capital, potentially increasing contingent taxpayer liability.
Based on analysis of 8 sections of legislative text.
Overhauls enterprise mortgage purchase, capital, and risk-transfer rules; mandates most single-family credit risk shift to private investors/insurers and sets ROE, capital, disclosure, and conservatorship-exit rules.
Official title: To amend the Federal Home Loan Mortgage Corporation Act and the Federal National Mortgage Association Charter Act to specify requirements with respect to the ownership of certain mortgage assets for the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association, and for other purposes.
Introduced June 25, 2026 by Scott Fitzgerald · Last progress June 25, 2026
Rewrites rules for how Fannie Mae and Freddie Mac buy and support conventional mortgages, requires those firms to transfer most mortgage credit risk to private investors or insurers, and changes FHFA capital, disclosure, and product-review authorities. It also sets an allowable return-on-equity band for the enterprises, requires payment of Treasury commitment fees to keep Treasury backstops, and authorizes Treasury to convert its preferred stock into common equity to help the firms exit conservatorship. The bill changes loan purchase eligibility and insurer/coverage requirements, alters FHA and enterprise principal-cap rules, lengthens public comment and disclosure timelines for new products, expands FHFA discretion over what counts as core capital, mandates broad credit-risk transfer targets, and creates a capital/ROE framework and timelines for exiting conservatorship. Several provisions impose specific deadlines for FHFA rulemaking and reporting and allow Treasury equity actions within set timeframes.