Here is the full text of the bill.
Or if you don't feel like reading 30 odd pages of legalese, here is a summary:

Federal Housing Enterprise Regulatory Reform Act of 2005 - Amends the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 to establish: (1) in lieu of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development (HUD), an independent Federal Housing Enterprise Regulatory Agency which shall have authority over the Federal Home Loan Bank Finance Corporation, the Federal Home Loan Banks, the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac); and (2) the Federal Housing Enterprise Board.

Sets forth operating, administrative, and regulatory provisions of the Agency, including provisions respecting: (1) assessment authority; (2) authority to limit nonmission-related assets; (3) minimum and critical capital levels; (4) risk-based capital test; (5) capital classifications and undercapitalized enterprises; (6) enforcement actions and penalties; (7) golden parachutes; and (8) reporting.

Amends the Federal Home Loan Bank Act to establish the Federal Home Loan Bank Finance Corporation. Transfers the functions of the Office of Finance of the Federal Home Loan Banks to such Corporation.

Excludes the Federal Home Loan Banks from certain securities reporting requirements.

Abolishes the Federal Housing Finance Board.

Some nuggets from the bill's guts:
McCain had no part in constructing this bill, it was created by Chuck Hagel, Elizabeth Dole and John Sununu.  McCain tacked his name on at the last minute as a co-sponsor.
This bill would have actually replaced the existing Dept. of Housing and Urban Development with the "Federal Housing Enterprize Regulatory Agency", which would be appointed directly by President Bush, which would actually remove any semblance of independent, nonpoliticized action that the HUD had left, and created a "Mortgage Czar".  This guy would have a 6 year term, cancellable of course at the pleasure of the President.
This bill would not have solved the issue of "bundling", all it would have done is make it more difficult for someone to get a mortgage.  Subprime or not, the Mortgage Czar would have unlimited authority to define "unacceptable risk".
Several statutes are also "worse than the disease".
Contrary to what McCain is saying, it was not voted down "by the Democrats", it never made it out of its senate committee, the "Committee on Banking, Housing, and Urban Affairs" ordered the bill to be reported with an amendment, but were generally favorable to the bill.  These amendments (to the "worse than the disease" aspects) were never amended and the bill died.