Movement is underway to possibly begin a serious effort at housing finance reform in Congress.
On the Senate side,Senator Johnny Isakson (R-Ga.) reintroduced a bill (S. 1048) on May 24 that would transition the system away from a government guarantee of a mortgage or mortgage-backed security; the measure does not specifically address multifamily lending.
Senators Mark Warner (D-Va.) and Bob Corker (R-Tenn.) currently are drafting legislation that sources say would establish a single government entity in place of government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, to purchase and securitize mortgages with a partial government guarantee. The current multifamily lending programs, while consolidated, would continue to operate with little modification. Notably, the bill also would generate funds for affordable housing by imposing a fee on all mortgages.
On the House side, Financial Services Committee Chairman Jeb Hensarling (R-Texas) is still in the process of examining GSE reform options. Representatives John Campbell (R-Ga.) and Gary Peters (D-Mich.) began work on a bill similar to Senators Warner and Corker’s draft legislation.