Two U.S. senators working on a bipartisan overhaul of Fannie Mae and Freddie Mac are seriously considering a plan that would break up the mortgage-finance giants, Bloomberg News reported yesterday. The proposal by Sens. Bob Corker (R-Tenn.) and Mark Warner (D-Va.) would attempt to foster competition in the secondary mortgage market, where loans are packaged into bonds and sold off to investors. Corker and Warner’s push to develop a plan marks Congress’ latest attempt to figure out what to do with Fannie and Freddie, an issue that has vexed lawmakers ever since the government took control of the companies in 2008 as the housing market cratered. The lawmakers’ plan is still being developed, and a Senate aide cautioned that no decisions had been made on any issues.
