Johnson, Crapo GSE draft in markup April 29

Johnson-Crapo
Tim Johnson (left) and Mike Crapo (right)

March 31, 2014 – Senate Banking Chairman Tim Johnson, D-S.D., and Ranking Member Mike Crapo, R-Idaho, announced Friday that the committee will hold a markup of their bipartisan housing finance reform proposal on April 29.

“It is critical that we vote on reforming our broken housing system,” Crapo said in the committee’s press statement. “We have produced a strong, bipartisan product, and I look forward to working with my colleagues to move this legislation forward and end the five year-plus status quo.”

The committee leader’s joint draft legislation would provide for a wind-down of Fannie Mae and Freddie Mac and creation of a new mortgage insurance entity that would be authorized to create one or more mutual companies to facilitate lenders’ access to the secondary mortgage market, including small lenders such as credit unions. The plan also sets up a series of new fees and the transferring of Fannie and Freddie funds to help capitalize the new entity.

NAFCU will monitor the April 29 markup and continues to urge lawmakers to ensure credit unions’ government-guaranteed access to the secondary mortgage market and fair pricing that is based on loan quality, not quantity, in any housing finance reform package.

NAFCU will also be attending additional meetings at the White House this week.

 

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