Voting along strong party lines, House Republicans passed House Financial Services Committee Chairman Jeb Hensarling’s (R-Texas) comprehensive housing finance reform proposal, known as the PATH Act (H.R. 2767), out of committee. Leading up to the vote, NMHC/NAA sent two letters to the House Finance Committee encouraging a number of revisions to better reflect the diversity of the housing sector during both the draft revision and bill mark up sessions. A fundamental concern is the fact that the proposal fails to acknowledge and account for critical distinctions between single-family and multifamily finance, leaving the well-functioning multifamily mortgage market vulnerable.
While the committee currently remains focused on fixing the problems with single-family financing, NMHC/NAA continue to engage lawmakers to develop more workable solutions for the issues in the PATH Act as the bill moves to the full House for consideration in the fall. Given some of the strong opposition to the bill, it’s likely some lawmakers will push to have amendments added before the bill goes to a final vote. While the Republican majority was sufficient to move the bill out of committee, it’s unclear whether Republicans will have enough votes to win passage in the House.