Congress Breaks Ground on Housing Reform

By Peter Schroeder and Vicki Needham

Housing reform will take a big step forward this week as committees in both the House and Senate begin their makeovers of the mortgage market.

The House Financial Services Committee on Tuesday will tackle a GOP proposal for overhauling the housing finance system that includes winding down the mortgage giants Fannie Mae and Freddie Mac over five years and ending the government guarantee for most mortgages.

The measure also includes a revamp of the Federal Housing Administration (FHA) that would get its finances in order and put the agency on a self-sustaining path. Click here to read more.