Sen. Mark Warner is one of two senators behind a proposal to reform housing finance.
Virginia Democratic Senator Mark Warner is helping lead a proposal through the upper chamber to overhaul Fanny Mae and Freddie Mac.
After the great recession, Democrats ushered through the Dodd-Frank Wall Street reform, which put restrictions on big financial institutions. But Senator Warner says that act fell short because it didn't focus on the housing market.
"The last part of financial reform is trying to make our housing finance system adequate for the 21st century," Sen. Warner says.
Warner says the current system allowed private shareholders to make money when times were good but put taxpayers on the hook for more than $180 billion during the economic downturn. The new plan that has bipartisan support in the Senate calls for unwinding Fannie Mae and Freddie Mac, which Warner says is necessary.
"Make sure that there's more private capital up front so when the downturns come, private capital takes the first hit rather than the taxpayers," Warner says.
Warner and Tennessee Republican Senator Bob Corker helped draft the initial proposal that's now been tweaked and signed off on by the heads of the banking committee.