House Democrats outline housing finance principles

Several panel Republicans, including Chairman Jeb Hensarling (Texas), released a discussion draft a week ago on a plan that would eliminate Fannie Mae and Freddie Mac within five years, end the government guarantee and turn the Federal Housing Administration (FHA) into a self-sufficient entity, requiring it to shore up its finances. 

The Senate Banking Committee released a bipartisan measure earlier this week that sets out a process for FHA to get its balance sheet in order.

The Senate plans to tackle the issue first before moving on to overhaul Fannie and Freddie. 

Sen. Bob Corker (R-Tenn.), a member of the panel and co-author of a housing finance reform plan, said he is expecting both bills to get through the committee by the end of the year. 

His partner on the bill, Sen. Mark Warner (D-Va.), said the House GOP measure would be unable to gain any traction with Democrats, specifically because it ends the 30-year mortgage.