PIMCO Joins Chorus Against Fannie Mae, Freddie Mac Wind-Down Plan

PIMCO’s new CEO Douglas Hodge points out that the Johnson-Crapo bill lacks protection for investors who play a critical role in financing the mortgage market. The legislation proposed by Johnson and Crapo is widely seen as President Obama’s favorite plan to reform the U.S. housing market. Johnson-Crapo bill Last month, US Senators Tim Johnson (D., S.D.) and Mike Crapo (R., Idaho) made a new proposal for reforming the US mortgage industry that falls in line with last year’s proposal from Bob Corker (R., Tenn.) and Mark Warner (D., Va.). Investors like PIMCO buy Mortgage Backed Securities (MBS), where a little…