Crucial Democrats Reject Mortgage Finance Overhaul Bill

Bloomberg
Friday, May 9, 2014

Six Democrats whose support is crucial to passing the Johnson-Crapo Freddie and Fannie reform bill agreed not to vote for the proposal in a private meeting. The senators were concerned that the structure of the re-insurer intended to replace Fannie and Freddie would be unworkable and that the bill lacked sufficient support for affordable housing goals. Senate Banking Committee Chairman Tim Johnson (D-S.D) and Senator Mike Crapo (R- Idaho) still have the backing of six Democrats and six Republicans on the 22-member committee. However, Senate Majority Leader Harry Reid (D-Nev.) has said the bill needs more support from Democrats before he will bring it to the floor.