The legislation, which has not been formally introduced, would fully wind down the government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, and privatize the current housing finance system. The bill would eliminate the National Housing Trust Fund, the Capital Magnet Fund, and current GSE affordable housing goals.
A full Committee markup of the bill has been scheduled for July 23 at 10:15 am to be held in room 2128 of the Rayburn House office building.
Unlike the Senate, where bipartisan GSE reform legislation has been introduced by Senator Bob Corker (R-TN) and Senator Mark Warner (D-VA) , the House bill has been crafted by conservative Republican members of the Financial Services Committee, including Chairman Jeb Hensarling (R-TX). As of yet, no bipartisan or Democratic legislation has been introduced in the House. The Corker-Warner bill includes a version of the NHTF.
In advance of the hearing, the Democrats on the Financial Services Committee released a set of principles for GSE reform, which call for the NHTF to be included in any future housing finance system. They “will oppose any legislation that is inconsistent with these principles.”
The key principles are:
Maintain the 30-year fixed rate mortgage;
Provide stability and liquidity;
Prevent disruptions to the U.S. Housing market during a transition to a new finance system;
Require transparency and standardization;
Maintain access for all qualified borrowers that can sustain homeownership and serve homeowners of the future; and
Ensure access to rental housing.
An archived hearing webcast and all witness testimony are available by clicking here.