A flotilla of bills to rein in Fannie Mae and Freddie Mac

Historically, their main task has been to support the private mortgage industry by buying up mortgages and turning them into mortgage-backed securities. During the boom, they were powerful organizations with significant influence. But they also backed questionable loans, and this did not end well when the boom went bust.Tax payers are now on the hook for billions. 

During the 2010 campaign, House Republicans vowed to take the stuffing out of Fannie and Freddie by "ending their government takeover, shrinking their portfolios, and establishing minimum capital standards." 

They're making good on their promise through the U.S. House of Representatives' Committee on Financial Services, which has a subcommittee on Capital Markets and Government Sponsored Enterprises. The subcommittee has worked on 14 separate bills related to Fannie and Freddie, all intended to either limit their power or bring increased transparency to their workings. 

Among the highlights: 

H.R. 1224, the Portfolio Risk Reduction Act: Sets new limits to reduce the size of Fannie and Freddie's portfolios over a period of five years.

H.R. 1222, the GSE Subsidy Elimination Act: Requires gradual increases in guarantee fees at Fannie Mae and Freddie Mac over the next two years. It directs the Federal Housing Finance Agency to consider market conditions in raising the fees so that the actions do not disrupt a housing recovery. GSE stands for government sponsored enterprise.

H.R. 1226, the GSE Mission Improvement Act: Repeals Fannie and Freddie's affordable housing goals. The bill's supporters said these goals led to risky borrowing that helped fuel the housing bubble. 

H.R. 31, the Fannie Mae and Freddie Mac Accountability And Transparency For Taxpayers Act: Increases the authority of Federal Housing Finance Agency's inspector general and expands reporting requirements to Congress.

H.R. 463, Fannie Mae and Freddie Mac Transparency Act: Makes Fannie and Freddie subject to the Freedom of Information Act (FOIA) to provide public access to their records. 

We should note that these bills have not been up for a vote from the full House yet, but they have been through a subcommittee mark-up, a sign of progress.

We're not sure what the ultimate fate of these bills will be, and to become law they will have to receive Senate approval and the signature of President Barack Obama (or another vote to override a veto). 

For now, we rate this promise In the Works.