Housing finance reform bill back on the agenda for next week

The Senate Banking Committee is expected to resume consideration next week of a measure to overhaul the mortgage finance system, a panel aide said Tuesday.

The markup was delayed a week ago as panel leaders sought more Democratic votes for a bill that would eliminate government-controlled mortgage giants Fannie Mae and Freddie Mac over five years and shift more of the mortgage risk to the private sector.

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The panel hasn't chosen a specific day.

The bipartisan legislation — crafted by Senate Banking Committee Chairman Tim JohnsonTim JohnsonCourt ruling could be game changer for Dems in Nevada Bank lobbyists counting down to Shelby’s exit Former GOP senator endorses Clinton after Orlando shooting MORE (D-S.D.) and panel ranking member Mike CrapoMichael (Mike) Dean CrapoLawmakers look to bypass Trump on North Korea sanctions Overnight Finance: What to watch for in GOP tax plan rollout | IRS sharing info with special counsel probe | SEC doesn't know full extent of hack | New sanctions target North Korean banks US Chamber opposes Trump's Export-Import Bank nominee MORE (R-Idaho) — had enough votes to gain committee approval but supporters wanted to attract more lawmakers to give it greater momentum heading to the Senate floor.

While most lawmakers agree that Fannie and Freddie need to be scrapped, there are broader concerns that big banks will have an advantage in the mortgage process, that the bill doesn't do enough to help borrowers in underserved areas, that mortgages could get more expensive and that the measure lacks enough affordable housing initiatives. 

Whether those issues have been worked out was unclear. 

Many of the outstanding issues under negotiation are a direct result of new concepts the bill proposes.

Lawmakers are wading into "unchartered waters," said Jerry Howard of the National Association of Home Builders.

While there were some concerns about halting progress on the bill, housing industry experts said that it was better to address the sticking points now instead of waiting for a floor fight.

Bill advocates argue that fixing the measure represents the last major reform needed since the 2008 financial crisis.

As of last week, 12 members — six Democrats and six Republicans — on the 22-member panel supports the bill. 

At the time of the postponement, the bill's authors and industry supporters downplayed the delay, saying they welcomed the additional time to build broader support among several Republicans and Democrats on the panel including GOP Sens. David VitterDavid VitterYou're fired! Why it's time to ditch the Fed's community banker seat Overnight Energy: Trump set to propose sharp cuts to EPA, energy spending Former La. official tapped as lead offshore drilling regulator MORE (La.) and Tom CoburnTom Coburn-trillion debt puts US fiscal house on very shaky ground Al Franken: 'I make fun of the people who deserved it' The more complex the tax code, the more the wealthy benefit MORE (Okla.) and Democrats Charles SchumerCharles (Chuck) Ellis SchumerOvernight Health Care: Schumer calls for tying ObamaCare fix to children's health insurance | Puerto Rico's water woes worsen | Dems plead for nursing home residents' right to sue Crying on TV doesn't qualify Kimmel to set nation's gun agenda Trump knocks ‘fake’ news coverage of his trip to Puerto Rico MORE (N.Y.), Elizabeth WarrenElizabeth Ann WarrenOvernight Finance: Lawmakers grill Equifax chief over hack | Wells Fargo CEO defends bank's progress | Trump jokes Puerto Rico threw budget 'out of whack' | Mortgage tax fight tests industry clout Michelle Obama is exactly who the Democrats need to win big in 2020 Wells Fargo chief defends bank's progress in tense Senate hearing MORE (Mass.), Jeff Merkeley (Colo.) and Bob MenendezRobert (Bob) MenendezOvernight Health Care: House passes 20-week abortion ban | GOP gives ground over ObamaCare fix | Price exit sets off speculation over replacement You want to recall John McCain? Good luck, it will be impossible Poll: Most in NJ want Menendez to resign if found guilty MORE (N.J.).