Lawmakers Weigh In on GSE Reform

The American Banker reports that at a recent industry event, Senate Banking Committee member Sen. Mark Warner (D-VA) stated, "I think the stars may align… where you could actually see housing finance reform happen ahead of some of the Dodd-Frank reforms, because I think there is more consensus here." Sen. Warner, alongside Sen. Bob Corker (R-TN), are said to be leading the charge for housing finance reform on the Senate Banking Committee, with bipartisan discussions planned "in the very near future."

In terms of specific proposals, Bloomberg reported that Sens. Warner and Corker were considering splitting Fannie's and Freddie's single family and multifamily businesses, with the possibility of the single family business being split again into smaller subdivisions. However, no specifics have been agreed upon yet. The goal of reorganization would be to increase competition in the single family market, reducing barriers to entry, and increasing access to credit.

SFIG has and will continue to advocate for holistic housing finance reform, including an appropriate role for government support, transparent and equitable regulatory treatment, and a return to the historical balance of funding between agency MBS (including CRT), whole loan funding, and PLS. To participate in SFIG's GSE Reform Task Force, please email William.Innes@SFIndustry.org.

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