Legislation
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H.R. 1224, the Portfolio Risk Reduction Act
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April 13, 2011
The legislation, introduced by Financial Services Committee Vice Chairman Jeb Hensarling, accelerates and formalizes the reduction in the size of the GSEs’ portfolios. As of January 2011, Fannie Mae retained portfolio was $777.059 billion, and Freddie Mac retained portfolio was $694.846 billion. The legislation would cap the GSEs portfolios to no more than $700 billion in the first year, declining to $600 billion for year two, $475 billion for year three, $350 billion for year four, and finally to $250 billion in year five.
On April 6, 2011, the Capital Markets Subcommittee approved H.R. 1224 on a vote of 24-14. |