Here Comes a Housing Pitch

April 2, 2024 | Housing, Update | By

Update 358 — Here Comes a Housing Pitch:
Can Mitch Afford to Swing and Miss?

The major piece of unfinished business from the financial crisis of 2008 is housing finance and housing policy generally.  The GSEs, under conservatorship since then, and long-standing problems in housing finance and the underlying market have been awaiting comprehensive reform.  The relevant House and Senate Committees are at work. The administration seems on board. But nothing happens around here without Mitch.

Is housing reform finally at the must-pass stage for the Senate Majority Leader on par with nominating Trump judges and officials (and maybe lifting the debt limit)?  And what is House Financial Services up to on this score? Read on.

Good weekends all..

Best,

Dana

————

GSE Reform State of Play

Reportedly, Trump administration officials are confirming plans to enact reforms that would return the Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac, to private ownership. For many, this might feel like GSE reform Groundhog Day.  

Since the financial crisis, secondary mortgage market facilitators Fannie Mae and Freddie Mac have been under government conservatorship. Congress has made efforts over the past decade to release the GSEs from government control, but disagreements over other housing policies have continually scuttled negotiations.

In 2014, Sens. Tim Johnson and Mike Crapo put forward a GSE reform bill that advanced through the Senate Banking Committee, 13 votes to 9, with six Ds and seven Rs voting yes. Progressive Democrats were opposed, with Sen. Warren arguing that the bill would reduce the pool of qualified borrowers for Fannie and Freddie mortgages. Then-Majority Leader Reid believed the bill would split the Democratic Caucus, so it never came to the floor for a full vote.

Last Congress, then-Chair of House Financial Services, Jeb Hensarling, introduced a bipartisan proposal with Democratic Reps. John Delaney and Jim Himes. The hybrid proposal would have returned GSEs to private ownership, while directing mortgage guarantor and wholly-owned government corporation, Ginnie Mae, to take on some of the existing roles of the GSEs. It got a hearing late in the 115th Congress, but did not receive a markup, let alone a floor vote.

Whither the Crapo Proposal?

In early February this year, Senate Banking Committee Chair Crapo proposed a new version of his bill, The Housing Finance Reform and Taxpayer Protection Act of 2014. Instead of replacing Fannie Mae and Freddie Mac with a new Federal Mortgage Insurance Corporation (FMIC), as the 2014 bill stipulated, Crapo’s 2019 plan would turn Fannie and Freddie into private guarantors. Eligible mortgages would be securitized by Ginnie Mae.

Both the current proposal and the 2014 legislation establish a New Market Access Fund to address affordable housing issues. They also maintain that the federal government should play a role in ensuring a competitive, sustainable mortgage market to American consumers. Both plans also increase the role of private capital as one solution to the affordable housing crisis.

Although Senate Democrats have been a part of bipartisan efforts to reform GSEs in the past, they may face pressure from the new face of the party today. It is possible that Chairman Crapo and Ranking Member Brown negotiate something smaller, but with 2020 fast approaching, it seems unlikely.

Housing on the HFSC Agenda

In 2014, Rep. Maxine Waters unveiled the Housing Opportunities Move the Economy (HOME) Forward Act. The bill proposed ending Fannie and Freddie altogether and replacing them with a new lender-owned “Mortgage Securities Cooperative” that would be the single issuer of federally guaranteed mortgage-backed securities.

Last Congress, Rep. Waters pushed back on Rep. Hensarling’s GSE reform proposal, saying that it didn’t do enough to address affordable housing, especially in underserved areas. Rep. Waters’ 2014 GSE reform proposal included increased funding for the National Housing Trust Fund and Capital Magnet Funds, which ensure affordable rental housing access to low-income households.

In July 2018, Rep. Waters announced that GSE reform would be a top priority for the House Financial Services Committee (HFSC) if Democrats took back the House. Since then, she has focused more on affordable housing. But with GSE reform purportedly moving in the administration and a proposal on the table in the Senate, Rep. Waters has an opportunity to set her own GSE reform agenda as chair of HFSC.

If At First You Don’t Succeed…

Sen. Crapo’s GSE reform proposal would be the 15th congressional attempt at GSE reform since the financial crisis. In theory, there should be room for a bargain, as similar proposals have achieved bipartisan support. Whether a deal will be made this Congress is an open question. With the Administration walking back its ‘imminent’ reform announcement earlier this year, but announcing its readiness to release a plan at the end of last month, it is unclear what role Trump’s government will play.

A White House-led plan would not be ideal. Not only would it likely forgo much of what House Democrats would try to leverage out of a Congressional deal, an executive-led effort would likely be rushed, creating potential market risk.

A Democratic administration could reverse any changes made by the current one, but Trump officials could set in motion changes that could be hard to undo. Will the Executive Branch finally take the GSE reform reins from Congress? For now, administration officials say they are putting “finishing touches” on a proposal.

Other Related Articles

75 thoughts on “Here Comes a Housing Pitch”

  2. asmr https://0mniartist.tumblr.com

    An impressive share! I have just forwarded this onto a co-worker who had been doing a little research on this.
    And he actually bought me breakfast simply
    because I stumbled upon it for him… lol. So allow me to reword this….
    Thank YOU for the meal!! But yeah, thanx for spending the time to discuss this issue here on your website.
    asmr 0mniartist

  3. 0mniartist

    Fantastic beat ! I would like to apprentice
    while you amend your site, how can i subscribe for
    a blog site? The account helped me a acceptable deal.
    I had been tiny bit acquainted of this your broadcast
    offered brilliant transparent concept 0mniartist asmr

  4. bitly.com

    Hi! Do you know if they make any plugins to protect against hackers?
    I’m kinda paranoid about losing everything I’ve worked
    hard on. Any recommendations? asmr 0mniartist

  5. bitly.com

    Appreciating the persistence you put into your site and in depth information you offer.
    It’s awesome to come across a blog every once in a while
    that isn’t the same out of date rehashed material. Great read!
    I’ve bookmarked your site and I’m adding your
    RSS feeds to my Google account. asmr 0mniartist

  8. asmr is

    I’m not sure why but this site is loading very slow for
    me. Is anyone else having this issue or is it a problem on my end?
    I’ll check back later and see if the problem still exists.

  10. asmr when

    Hi my loved one! I wish to say that this article is awesome, great written and come with almost all vital infos.
    I would like to look extra posts like this .

  12. the gamefly

    A motivating discussion is definitely worth comment. I believe that
    you ought to publish more on this topic, it may
    not be a taboo matter but generally folks don’t discuss these issues.
    To the next! All the best!!

  13. asmr this

    Hey there! Do you know if they make any plugins to protect
    against hackers? I’m kinda paranoid about losing everything I’ve worked hard on. Any suggestions?

  15. asmr but

    Excellent beat ! I would like to apprentice while you amend
    your site, how can i subscribe for a blog website?
    The account helped me a acceptable deal. I had been tiny bit acquainted of this your broadcast provided bright
    clear idea

  19. j.mp

    scoliosis
    Having read this I believed it was very enlightening. I
    appreciate you taking the time and effort to put this short article together.
    I once again find myself spending a lot of time both reading and commenting.
    But so what, it was still worth it! scoliosis

  20. bitly.com

    scoliosis
    Hi there! This article couldn’t be written much better!

    Going through this post reminds me of my previous roommate!

    He constantly kept preaching about this. I’ll
    forward this post to him. Fairly certain he’s going to have a
    great read. Thank you for sharing! scoliosis

  23. why asmr

    Excellent way of describing, and pleasant article to take
    facts on the topic of my presentation subject, which i
    am going to convey in college.

  25. with dating sites

    We stumbled over here coming from a different web address and
    thought I might as well check things out. I like what I see so now i am following you.
    Look forward to checking out your web page for a second time.

  26. are dating sites

    Fantastic web site. Plenty of helpful information here.

    I’m sending it to a few buddies ans additionally sharing in delicious.
    And of course, thank you in your effort!

  29. dating sites this

    I was recommended this website by my cousin. I’m not sure whether this post
    is written by him as no one else know such detailed about my trouble.

    You’re wonderful! Thanks!

  31. http://tinyurl.com/y4wgh9ht

    Definitely imagine that that you stated. Your favourite justification appeared to be
    at the internet the simplest thing to take note of.
    I say to you, I definitely get annoyed whilst folks think about
    concerns that they just don’t realize about.

    You controlled to hit the nail upon the highest and outlined out the whole thing with no need side effect
    , folks can take a signal. Will probably be back to get more.
    Thanks

  32. http://tinyurl.com/

    I’m curious to find out what blog system you have been working with?
    I’m having some minor security issues with my latest site
    and I’d like to find something more safe. Do you have any suggestions?

  33. Jasmin

    Attractive section of content. I just stumbled upon your
    web site and in accession capital to assert that I get actually
    enjoyed account your blog posts. Anyway I’ll be subscribing to your feeds and even I achievement you access consistently fast.

  34. Lynell

    Hi, Neat post. There’s an issue along with your website in internet explorer, might
    test this? IE still is the marketplace leader and a big component of other people will leave out your fantastic writing due to this problem.

  35. Candice

    I truly love your website.. Very nice colors & theme. Did you make this amazing site yourself?
    Please reply back as I’m hoping to create my very own blog and would love to learn where you got this from or just what the theme is called.
    Thanks!

  38. SynerSooth CBD Review

    Hi! I know this is sort of off-topic but I had to ask.
    Does managing a well-established blog like yours require a massive amount
    work? I’m brand new to running a blog but I do write in my diary everyday.
    I’d like to start a blog so I can share my own experience and views online.
    Please let me know if you have any ideas or tips for new aspiring bloggers.
    Appreciate it!

    Here is my web page: SynerSooth CBD Review

  39. Astroscope

    It’s really a nice and helpful piece of info. I’m happy that you just shared this useful information with us.

    Please stay us up to date like this. Thanks for sharing.

    my web blog :: Astroscope

  40. Piper

    Amazing things here. I’m very satisfied to see your article.
    Thank you a lot and I’m taking a look forward to contact you.
    Will you kindly drop me a e-mail?

    Also visit my webpage: Piper

  41. Pellamore Review

    I believe this is one of the so much important information for me.
    And i am happy reading your article. However wanna observation on few normal things, The
    web site style is perfect, the articles is truly great :
    D. Excellent job, cheers.

    My webpage … Pellamore Review

  43. Total Pure CBD Oil

    I’m impressed, I have to admit. Rarely do I come across a blog that’s both equally
    educative and engaging, and without a doubt, you’ve hit the nail on the head.
    The issue is something that too few men and women are speaking intelligently about.
    Now i’m very happy I found this during my search for something regarding this.

    My blog; Total Pure CBD Oil

  47. spinfinity casino bonus codes

    An outstanding share! I’ve just forwarded this onto a colleague who was doing a little research on this.

    And he actually bought me lunch due to the fact that I discovered it for him…
    lol. So allow me to reword this…. Thank YOU for the meal!!

    But yeah, thanx for spending some time to talk about this matter here on your internet site.

  52. Rhino Spark Pills

    Thanks a ton for being the instructor on this
    subject matter. My spouse and i enjoyed your current article greatly and most
    of all cherished the way you handled the areas I widely known as controversial.
    You are always extremely kind to readers like me and let me in my life.

    Thank you.

    Also visit my website Rhino Spark Pills

  57. Green Earth CBD Gummies

    Hey there, I think your blog might be having browser compatibility issues.

    When I look at your blog in Chrome, it looks fine but when opening in Internet Explorer, it has some overlapping.
    I just wanted to give you a quick heads up! Other then that,
    terrific blog!

    My web-site :: Green Earth CBD Gummies

  59. Cool Air Portable AC

    Thanks for your personal marvelous posting! I really enjoyed reading it, you’re a great author.I will
    make sure to bookmark your blog and will come back
    at some point. I want to encourage you to ultimately continue your great
    job, have a nice evening!

    Here is my blog post :: Cool Air Portable AC

  60. Alpha Extracts CBD

    Hey there! I know this is somewhat off-topic but
    I had to ask. Does running a well-established website like
    yours take a massive amount work? I am completely new to
    operating a blog however I do write in my diary daily. I’d like to start a blog so I
    can easily share my experience and thoughts
    online. Please let me know if you have any ideas or tips for new aspiring blog owners.

    Thankyou!

    my homepage: Alpha Extracts CBD

  62. KetoBHB Plus Reviews

    My spouse and i still cannot quite assume that I could become one of
    those reading through the important recommendations found on your web site.
    My family and I are seriously thankful for your generosity and for providing me the possibility to pursue my own chosen career path.
    Thank you for the important information I got from your web page.

    Feel free to surf to my homepage; KetoBHB Plus Reviews

  65. Pingback: is cottage cheese keto

  67. tinyurl.com

    Have you ever thought about including a little bit more than just
    your articles? I mean, what you say is valuable and everything.
    Nevertheless imagine if you added some great graphics or video
    clips to give your posts more, “pop”! Your content
    is excellent but with pics and clips, this
    blog could undeniably be one of the greatest in its
    niche. Wonderful blog!

  68. Wild Lean Keto Boost Reviews

    The very next time I read a blog, I hope that it won’t disappoint
    me just as much as this particular one. I mean, I know it
    was my choice to read, but I truly thought you’d have something interesting to talk about.
    All I hear is a bunch of crying about something you can fix if you were not
    too busy seeking attention.

    my blog post … Wild Lean Keto Boost Reviews

  75. Therese

    Hey there! I’ve been following your site for some time now and
    finally got the bravery to go ahead and give you a shout out
    from New Caney Texas! Just wanted to say keep up the fantastic work!

    Here is my page; Therese

Leave a Comment

Your email address will not be published. Required fields are marked *