A coalition of more than two dozen conservative groups sent a letter to members of the Senate Banking Committee Wednesday, urging them to vote against a major bill to overhaul the housing finance market.

The legislation, crafted by Sens. Tim Johnson, D-S.D., chairman of the banking panel, and Mike Crapo, R-Idaho, the ranking member, is currently scheduled for a markup starting April 29. The bill, which draws on earlier work by Sens. Bob Corker, R-Tenn., and Mark Warner, D-Va., would unwind Fannie Mae and Freddie Mac and establish a new secondary market backed by a government guarantee in the event of catastrophic losses. The system would be overseen by a new regulator, the Federal Mortgage Insurance Corp.

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