A major aspect of the bipartisan housing finance reform legislation introduced by Senators Tim Johnson (D-SD) and Mike Crapo (R-ID) of the Senate Banking Committee is a mortgage cooperative to ensure small and regional lenders can sell their loans for cash. As nationalmortgagenews.com informs MHProNews.com, the cooperative would initially be funded by the government, replacing Fannie Mae and Freddie Mac. The bill would allow members with assets of up to $500 billion, which excludes only the largest five banks in the country. A bill introduced last summer by Sen. Bob Corker (R-TN.) and Mark Warner (D-VA) was designed for small and medium-sized lenders, and was funded by members instead of by the government. More details will emerge as Senators Johnson and Crapo release the text of the measure. ##

(Image credit: housingwire.com–money house)