The National Association of Home Builders (NAHB) says the bipartisan legislation introduced this week by Sens. Bob Corker (R-Tenn.) and Mark Warner (D-Va.) is an important first step in moving the dialogue forward on overhauling the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, and the U.S. housing finance system.

The Housing Finance Reform and Taxpayer Protection Act of 2013 (S. 1217) contains several elements recommended by NAHB to restructure the nation’s housing finance system, such as retaining a federal backstop while limiting taxpayer exposure.

Currently, Fannie Mae, Freddie Mac and the Federal Housing Administration guarantee or insure more than 90 percent of all home mortgage activity. The NAHB says this is not sustainable or desirable as the association believes the private sector must play a greater role.

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