A proposed bipartisan bill that would dissolve Fannie Mae and Freddie Mac but retain an explicit government guarantee for certain mortgage-backed securities is either dangerously unfeasible or it's a measured way to preserve the government's role in housing finance, along with the 30-year mortgage, according to industry observers. Filed last late week, H.R. 1859, the Housing Finance Reform Act of 2011, would phase out the government-sponsored enterprises within five years and replace them with privately capitalized entities authorized to issue MBS that carry a government guarantee. The bill would empower the Federal Housing Finance Agency to issue...