NLIHC Provides Congressional Overview Lobby Day March 28, 2012
Given that 2012 is an election year and the deep divisions between the two parties, legislative gridlock is expected to continue. The National Housing Trust Fund Campaign will continue to monitor all GSE-related legislation and advance all opportunities to fund the National Housing Trust Fund.
In this the third of four posts we will focus on Housing Finance Reform.
It is expected that Congress will continue to assess the future of government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. In the first session of the 112th Congress, the Senate Committee on Banking, Housing, and Urban and Affairs and the House Committee on Financial Services held numerous hearings on reform of the GSEs. At this point, it is doubtful that any meaningful proposal to reform the housing finance system will emerge this year.
On January 4, 2012, the Federal Reserve released a report to the leadership of the Senate Committee on Banking, Housing, and Urban and Affairs and the House Committee on Financial Services. The report states that the GSEs, as directed by their regulator the Federal Housing Finance Agency (FHFA), must do more to stabilize the housing market, even at the expense of the GSEs’ bottom lines. One possible step is the implementation of an REO-to-rental program for properties acquired by the GSEs through foreclosure. NLIHC submitted comments in response to an FHFA request for information on how much a program could be implemented in September.
To read the report click here. Click here to learn more about the NLIHC and its 2012 Annual Policy Conference and Lobby Day.