Secondary market reform legislation formally introduced in the Senate this week provides more detail on key elements of an ambitious proposal to replace Fannie Mae and Freddie Mac with a new government MBS program, but it’s still widely seen as a starting point in a long process. The Housing Finance Reform and Taxpayer Protection Act of 2013, introduced by Sens. Bob Corker, R-TN, and Mark Warner, D-VA, includes a new section that would protect investors in MBS that carry guaranties from the Federal Mortgage Insurance Corp. from civil liability under federal and state law. Under the bill, S. 1217, the FMIC would sell...