Waters drafting own GSE reform bill
Rep. Maxine Waters (Dietsch photo)
Sept. 11, 2013 – House Financial Services Committee Ranking Member Maxine Waters, D-Calif., told NAFCU Congressional Caucus attendees Tuesday she is drafting an alternative to H.R. 2767, the “PATH Act,” for housing finance reform and will be looking for industry input.
Waters said she was “encouraged” by the bipartisan efforts in the Senate and recent statements by the president on housing finance reform, but she says the PATH Act, which would phase out the two government-sponsored enterprises, would “end the 30-year, fixed-rate mortgage as we know it” and lead to a secondary market “dominated by megabanks.” She added the measure would make the Federal Housing Administration “an administrative nightmare.”
In other Caucus remarks, Waters reiterated her support for the reforms of the Dodd-Frank Act to check systemic risk and ensure all institutions “play by the same rules” in providing services to consumers.
The statute was written to address abuses that led to the financial crisis, and Waters reiterated that credit unions, unlike some large financial institutions, “did not make the consumer loans that contributed” to that crisis.
Waters said she supports legislation to increase credit unions’ member business loan authority and to allow credit unions’ access to supplemental capital – both measures that would further elements of NAFCU’s five-point plan for credit union regulatory relief.
Waters also pledged to oppose any action to end credit unions’ federal corporate income tax exemption. Noting credit unions’ not-for-profit, cooperative, member-owned structure, Waters said, “You are not banks and should not be taxed like banks.”
NAFCU Congressional Caucus
Housing finance reform