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 CrapoMichael (Mike) Dean CrapoOvernight Finance: GOP criticism of tax bill grows, but few no votes | Highlights from day two of markup | House votes to overturn joint-employer rule | Senate panel approves North Korean banking sanctions Senate panel approves North Korea banking sanctions Trump names Powell as chairman of Federal Reserve 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 (Chuck) Ellis SchumerTrump is right: The visa lotto has got to go Schumer predicts bipartisan support for passing DACA fix this year No room for amnesty in our government spending bill MORE (N.Y.), Robert MenendezRobert (Bob) MenendezIn judge's 2010 Senate trial, Menendez was guilty of hypocrisy Excused Menendez juror: 'I don't think he did anything wrong' We don't need a terrorist attack to know diversity program has to go MORE (N.J.), Jack ReedJohn (Jack) Raymond ReedAfter Texas shooting, lawmakers question whether military has systemic reporting problem McCain pledges 'rigorous oversight' after Air Force failure to report Texas gunman's conviction Dems furious over Air Force failure to report Texas shooter's conviction MORE (R.I.), Elizabeth WarrenElizabeth Ann WarrenBipartisan group of lawmakers aim to reform US sugar program Schumer: Dems want DACA fix in government spending bill The Hill interview — DNC chief: I came here to win elections MORE (Mass.), Sherrod BrownSherrod Campbell BrownTrump tells Senate Dems that 'rich people get hurt' in GOP tax plan Senate panel approves North Korea banking sanctions Trump names Powell as chairman of Federal Reserve MORE (Ohio) and Jeff MerkleyJeffrey (Jeff) Alan MerkleyDems mull big changes after Brazile bombshell Dems push clearer GMO labeling Dems cheer Flake after scathing Trump speech 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.