In a bitterly partisan Congress, two senators are making a rare push across party lines to solve a persistent riddle with huge implications for the U.S. housing market: What to do with Fannie Mae and Freddie Mac? Aides to Sens. Bob Corker (R-Tenn.) and Mark Warner (D-Va.) have begun meeting with industry groups and former government officials to discuss ideas, Bloomberg News reported today. Senate Banking Committee Chairman Mike Crapo, whose panel would have to shepherd any bill to overhaul the mortgage finance giants, has also begun to hold housing-finance briefings with the idea of building toward a compromise. The Fannie-Freddie fix, promised since they were seized by regulators in 2008 and sustained with $187.5 billion in Treasury funds, has taken on increased urgency as the companies face the threat of needing more aid. Under the terms of their bailout, they can’t retain any capital starting next year, meaning taxpayers would have to cover any losses.
