The federal government should create an entirely new secondary market agency for "high-quality" private mortgages that would replace Fannie Mae and Freddie Mac, according to Sen. Johnny Isakson, R-Ga.

The Georgia senator introduced a bill Thursday to wind down and eventually liquidate the two GSEs. His goal is to eventually privatize the secondary market for single-family and multifamily mortgages, a business currently dependant on the liquidity provided by Fannie and Freddie.

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