WASHINGTON (4/1/11)—Senators John McCain (R-Ariz.) and Orrin Hatch (R-Utah) on Thursday introduced legislation that seeks to privatize government sponsored mortgage backers Fannie Mae and Freddie Mac and to end the ongoing taxpayer funding of those entities. The legislation would end the government conservatorship of Fannie Mae and Freddie Mac within two years. The maximum portfolio held by the GSEs would be limited to $700 billion, and this limit would be gradually reduced to $250 billion over the course of five years. The proposal would also limit Fannie and Freddie’s conforming loan limit to $417,000. The Senate bill is similar to House legislation introduced by House Financial Services Committee Chairman Rep. Spencer Bachus (R-Ala.) and committee vice chair Rep. Jeb Hensarling (R-Texas). House Republicans earlier this week unveiled eight bills aimed at reforming Fannie Mae and Freddie Mac. The eight bills are known as the Government Sponsored Entities (GSE) Credit Risk Equitable Treatment Act, The Equity in Government Compensation Act, The Portfolio Risk Reduction Act, The GSE Subsidy Elimination Act, The GSE Mission Improvement Act, The Fannie Mae and Freddie Mac Accountability and Transparency for Taxpayers Act, The GSE Risk and Activities Limitation Act, and The GSE Debt Issuance Approval Act.