Proposed legislation would allow Fannie Mae and Freddie Mac to purchase and securitize residential construction loans, provided those projects meet certain affordability and safety and soundness requirements.

In a scenario that Fannie and Freddie exit conservatorship, Urban Institute analysts believe that the courts will allow the uniform MBS to persist, even though it requires coordination between the GSEs that could invite antitrust litigation.

Proposed changes would revamp the treatment of “Indian areas” and rural agricultural workers, along with altering the method of calculating area median income.