Advocacy on the Move
Congress Continues Conversation on Housing Finance Reform
October 22, 2019
The conversation around Housing Finance Reform and the potential privatization of the GSEs continues to percolate on the Hill. Though the tone remains very partisan, there is clear consensus that reform does need to happen. Below you can see the full list principles from each of the respective chairs.
Chairwoman Maxine Waters (D- CA 43):
- maintaining access to the 30-year fixed rate mortgage;
- ensuring sufficient private capital is in place to protect taxpayers;
- providing stability and liquidity so that we can withstand any future financial crisis;
- ensuring a smooth transition to a new finance system;
- requiring transparency and standardization in a way that ensures a level playing field for all financial institutions, especially credit unions and community banks;
- maintaining access for all qualified borrowers that can sustain homeownership and serving homeowners of the future; and,
- ensuring access to affordable rental housing.
Chairman Mike Crapo (R – ID)
- Reduces the systemic, too-big-to-fail risk posed by the current duopoly of mortgage guarantors;
- Preserves existing infrastructure in the housing finance system that works well, while significantly increasing the role of private risk-bearing capital;
- Establishes several new layers of protection between mortgage credit risk and taxpayers;
- Ensures a level playing field for originators of all sizes and types, while also locking in uniform, responsible underwriting standards;
- Promotes broad accessibility to mortgage credit, including in underserved markets.
You can watch a recording of today’s full House Financial Services Hearing here.
Posted in Advocacy on the Move.