Housing finance reform bill set for Thursday markup

The Senate Banking Committee will consider a measure on Thursday that would eliminate government-controlled mortgage giants Fannie Mae and Freddie Mac. 

The bill, which was delayed two weeks ago in an effort to attract more Democratic support, is expected to pass the committee with a smaller majority than hoped by its backers. 

Housing industry leaders last week expressed surprise and frustration that six committee Democrats said they weren't prepared to vote for the long-delayed legislation in its current form. 

They said they had hoped Democrats would continue working on making changes, such as ensuring that underserved populations aren't left out and big banks don't control the mortgage market, up until the panel considered the measure.

The latest bipartisan version authored 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 top Republican Mike CrapoMike CrapoOvernight Regulation: Senate Banking panel huddles with regulators on bank relief | FCC proposes 2M fine on robocaller | Yellowstone grizzly loses endangered protection Overnight Finance: Big US banks pass Fed stress tests | Senate bill repeals most ObamaCare taxes | Senate expected to pass Russian sanctions bill for second time All big US banks pass Dodd-Frank stress tests MORE (Idaho) is expected to get votes from 12 long-standing supporters of the 22-member panel.

But late last week the group of Democrats — Charles SchumerCharles SchumerFCC advances proposal to unmask blocked caller ID in threat cases Trump: Pelosi's leadership good for the GOP Live coverage: Senate GOP unveils its ObamaCare repeal bill MORE (N.Y.), Robert MenendezRobert MenendezBipartisan group, Netflix actress back bill for American Latino Museum The Mideast-focused Senate letter we need to see Taiwan deserves to participate in United Nations MORE (N.J.), Jack ReedJack ReedDems push for more action on power grid cybersecurity 3 tips for President Trump before he outsources his duties to Mattis McCain threatens to block Trump's deputy Defense nominee MORE (R.I.), Elizabeth WarrenElizabeth WarrenLive coverage: Senate GOP unveils its ObamaCare repeal bill Overnight Regulation: Labor groups fear rollback of Obama worker protection rule | Trump regs czar advances in Senate | New FCC enforcement chief Budowsky: Dems madder than hell MORE (Mass.), Sherrod BrownSherrod BrownDems push for more action on power grid cybersecurity Senate Banking panel huddles with regulators on bank relief Overnight Regulation: Labor groups fear rollback of Obama worker protection rule | Trump regs czar advances in Senate | New FCC enforcement chief MORE (Ohio) and Jeff MerkleyJeff MerkleyOvernight Regulation: Labor groups fear rollback of Obama worker protection rule | Trump regs czar advances in Senate | New FCC enforcement chief Dems urge Sessions to reject AT&T-Time Warner merger Dems step up attacks on GOP ObamaCare bill MORE (Ore.) — said they couldn’t support the measure.

The major concern is that without a supermajority on the committee, probably around 17 votes, that the bill won’t have enough momentum to pass the Senate and put pressure on the House to act.