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 CrapoMike CrapoYou're fired! Why it's time to ditch the Fed's community banker seat GOP debates tax cuts vs. tax reform Conservative groups urge Trump to stick with Ex-Im 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 CoburnAl Franken: 'I make fun of the people who deserved it' The more complex the tax code, the more the wealthy benefit Congress, stop using our nation's military policy for political purposes MORE (Okla.) and Democrats Chuck SchumerCharles SchumerDemocrats urge Trump to condemn Charlottesville violence Melania Trump on Charlottesville protests: 'No good comes from violence' It's time for McConnell to fight with Trump instead of against him MORE (N.Y.), Elizabeth WarrenElizabeth WarrenWarren: Education Dept lawyer may have violated conflict-of-interest laws Congress should think twice on the Israel Anti-Boycott Act Sanders plans to introduce single-payer bill in September MORE (Mass.), Jeff Merkeley (Colo.) and Robert MenendezRobert (Bob) MenendezLawmakers target horse meat trade Senators, staff get approval to testify in Menendez corruption trial Trump admin not opposed to new war authorization MORE (N.J.).