Senate Banking Committee Chairman Says GSE Reform is Unlikely

first_img Demand Propels Home Prices Upward 2 days ago Related Articles Demand Propels Home Prices Upward 2 days ago  Print This Post The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Fannie Mae Freddie Mac GSE Reform Richard Shelby Senate Banking Committee 2015-03-25 Brian Honea Home / Daily Dose / Senate Banking Committee Chairman Says GSE Reform is Unlikely A key government official indicated in a speech Wednesday that GSE reform is unlikely for the next two years and that Fannie Mae and Freddie Mac will likely remain under conservatorship of the Federal Housing Finance Agency (FHFA) for the time being, according to a report from Bloomberg.U.S. Senator Richard Shelby (R-Alabama), the chairman of the Senate Banking Committee, said in his speech Wednesday at the U.S. Chamber of Commerce Conference in Washington, D.C., that he would rather leave the two GSEs under control of the FHFA than to replace them with a private insurance company system with a government backstop, as a bi-partisan bill proposed by Bob Corker (R-Tennessee) and Mark Warner (D-Virgina) called for. That bill, S.1217, passed in the Senate Banking Committee by a vote of 13 to 9 last year even though Shelby opposed it. The bill never got a full vote in the Senate, however.Fannie Mae and Freddie Mac required a combined taxpayer bailout of $188 billion in 2008 after the government seized control of them. The two GSEs returned to profitability in 2012. The future of the two GSEs has been a hotly contested topic in Washington as well as in the rest of the housing industry. Both parties appear to want to wind down the FHFA’s conservatorship of the two, but cannot agree on what, if anything, should replace them as well as what role the government should play in housing, if any.Shelby’s sentiments on Wednesday were similar to those expressed in a white paper released earlier in March by the Office of the Inspector General of the FHFA on the future of Fannie Mae and Freddie Mac.”Absent Congressional action, or a change in FHFA’s current strategy, the conservatorships will go on indefinitely,” wrote Acting Deputy Inspector General for Evaluations Kyle Roberts in the white paper. “The Enterprises’ future status is beyond their control. At present, it appears that Congressional action will be needed to define what role, if any, the Enterprises play in the housing finance system.”Shelby said in his speech Wednesday that he had priorities ahead of GSE reform, and that he didn’t want to “do something to make it worse than it is,” according to the report. in Daily Dose, Featured, Government, News About Author: Brian Honea Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save Tagged with: Fannie Mae Freddie Mac GSE Reform Richard Shelby Senate Banking Committeecenter_img Servicers Navigate the Post-Pandemic World 2 days ago March 25, 2015 1,371 Views Sign up for DS News Daily The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Subscribe Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Previous: Shift from Bank to Nonbank Lending Causing Rise in Default Risk for Agency-Backed Loans Next: Cold Winter, Soft Economic Growth Cause Housing Market to Stumble Senate Banking Committee Chairman Says GSE Reform is Unlikelylast_img read more

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