In just a few minutes, a conference regarding Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) will begin. Shareholders and lawmakers continue to debate both government-sponsored entities’ futures. The bill which has gotten the most attention is the Johnson-Crapo bill, but there’s a lesser-known one that’s out there right now.

Fannie Mae Freddie Mac

What Johnson-Crapo may do

According to economist and Competitive Enterprise Institute John Berlau, the Johnson-Crapo bill will do nothing but change the names of Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC). According to a report from the Voice of Russia, the bill just merges the two entities into one and is “just shifting things around.”

He said it possibly puts taxpayers at more risk because it basically guarantees that there will be $5.6 trillion in debt. In addition, it freezes out community banks and individuals who were both preferred and common shareholders, according to Berlau.

Another Fannie Mae, Freddie Mac bill making the rounds

The economist also pointed to an alternate bill regarding Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA)’s and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC)’s future which is currently in the House. He said that bill will be more about phasing out the role the government plays in the entities rather than replacing them

However, Berlau believes that bill is also wrong because it doesn’t compensate shareholders.

What will happen to Fannie Mae, Freddie Mac?

And so the future of Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) hangs in the balance today. Shareholders will undoubtedly be watching today’s conference for more details. Shares of both tumbled last week when news that the Senate Finance Committee was about to offer up the Johnson-Crapo billion, which some say could wipe out equity holders. There’s no denying that at this point, taxpayers and shareholders of both entities have a lot to lose—or maybe, just maybe, gain.