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House Approves Sound GSE Regulatory Reform Bill
The U.S. House of Representatives on May 22 passed NAHB-supported legislation that would establish a strong regulatory framework for the housing government-sponsored enterprises (GSEs) — Fannie Mae, Freddie Mac and the Federal Home Loan Banks.
Because of the importance of this issue to the housing community, NAHB designated passage of H.R. 1427, the Federal Housing Finance Reform Act, as a “key vote” and sent a letter to every representative urging them to support the bill. The measure was approved by a solid bipartisan margin of 313 to 104.
“The comprehensive GSE reform bill offers a sound regulatory solution for our secondary market institutions that would safeguard and strengthen their financial health while simultaneously supporting their ability to fulfill their housing-mission activities,” said Jerry Howard, executive vice president and CEO of NAHB.
In another key vote for NAHB, lawmakers by a margin of 383 to 36 overwhelmingly approved a pro-housing amendment offered by Reps. Randy Neugebauer (R-Texas), Melissa Bean (D-Ill.), Dennis Moore (D-Kan.) and Gary Miller (R-Calif.) clarifying that the new regulatory entity created by the legislation must base its evaluation of the risk of Fannie Mae’s and Freddie Mac’s portfolio holdings solely on the mission of those institutions and safety and soundness considerations, and not on broader concerns, such as systemic risk.
This amendment would prevent the new regulator from making an overly broad interpretation of risk that might unnecessarily constrain portfolio activities of Fannie Mae and Freddie Mac, disrupting the mortgage markets and impeding the enterprises in their pursuit of their housing mission.
In other votes designated by NAHB as “key,” three anti-housing amendments that would have restricted GSE portfolios, eliminated the affordable housing fund and prevented conforming loan limits from being raised in high-cost areas were defeated handily or withdrawn.
In the Senate, any GSE reform bill must first advance through the Senate Banking Committee, chaired by Sen. Chris Dodd (D-Conn.). While Dodd has yet to hold hearings on the topic or release draft legislation, he issued the following statement after last week’s House vote:
“I commend Barney Frank and the House for their efforts. Homeownership is the cornerstone of the American dream and we need to do everything possible to make that dream a reality. Clearly, GSEs can play an important role in advancing that goal. I believe our nation needs a stronger regulatory structure and a deeper commitment to meeting the housing needs of the American people. I am committed to continuing to find common ground to address this important issue in a bipartisan, timely and thoughtful way.”
To read the legislation, click here and enter H.R. 1427 in the box at the center of the page.
For more information, e-mail Michael Strauss at NAHB, or call him at 800-368-5242 x8252.
Plan to Attend the 2007 NAHB Legislative Conference on June 6
The 2007 NAHB Legislative Conference provides a unique opportunity for builders to speak directly with their members of Congress and to take a stand on the issues that affect their businesses and bottom line.
The day-long conference is on Wednesday, June 6 and coincides with the NAHB spring board meeting in Washington, D.C.
Attending the 2007 Legislative Conference offers NAHB members an unparalleled opportunity to:
- Lobby members of Congress to protect your business
- Establish lasting relationships with your elected federal officials
- Share builder concerns in a national forum in Washington, D.C.
- Learn the latest policy developments on the key issues affecting your business
- Demonstrate your industry’s commitment to responsible policies, pragmatic reforms, effective programs and providing the resources necessary to meet our nation’s ongoing housing needs
- Network and share business strategies with your peers
- Learn how to be an effective advocate for your business and your industry
- Make your views known on Capitol Hill
- Do your part to ensure that NAHB’s issues are heard by Washington policymakers
- Galvanize a united front on Capitol Hill
For more information or to register, click here.
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