Senate Banking Committee Chairman Tim Johnson (D-SD) and Ranking Member Mike Crapo (R-ID) announced today they have reached an agreement on housing finance reform. The bipartisan agreement hopes to preserve fair lending practices and provide affordable housing throughout the country.
The legislation, currently being drafted, would “protect taxpayers from bearing the cost of a housing downturn; promote stable, liquid, and efficient mortgage markets for single-family and multifamily housing; ensure that affordable 30-year fixed-rate pre-payable mortgages continue to be available and affordable; provide equal access for lenders of all sizes to the secondary market; facilitate broad availability of mortgage credit for all eligible borrowers in all areas.”
‘“This agreement moves us closer to ending the five-year status quo and beginning the wind down of Fannie and Freddie while protecting taxpayers with strong private capital, building the components for a stable secondary market and avoiding repeating the mistakes of the past,”’ Ranking Member Crapo said.
‘“There is near unanimous agreement that our current housing finance system is not sustainable in the long-term and reform is necessary to help strengthen and stabilize the economy,”’ said Chairman Johnson.
The draft legislation and scheduled markups are being finalized and are planned to be announced in the coming weeks.