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The House bill, sponsored by Rep. Scott Garrett, R-N.J., would remove federal support for the mortgage market, leaving it in the hands of private entities. The Senate bill, written by Sens. Mark Warner, D-Va., and Bob Corker, R-Tenn., meanwhile, would preserve some federal role in the market by creating a new agency, the "Federal Mortgage Insurance Corporation," to replace Fannie and Freddie. Obama"s plan also embraces a federal role in the market, albeit one in which private investors would be forced to take losses on mortgage securities before taxpayers.
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