House Bill Would Allow Taxation of Fannie, Freddie as Way to Solve State Budget Crunch
May 23, 2003
Legislation introduced in the House of Representative could turn Fannie Mae and Freddie Mac into a revenue source for cash-strapped state and local governments. Dubbed the “Secondary Mortgage Market Fair Competition Act,” H.R. 2117 would open the GSEs’ earnings up to taxation by state government. Currently, the two secondary-market giants are required to pay state property tax, but they are