Committee Addresses FHFA, Community BankingPosted by on March 22, 2013
In 2008, Fannie Mae and Freddie Mac, the two giant government sponsored entities which helped fuel the housing bubble, received the largest bailout in U.S. history. Serving as Acting Director of the Federal Housing Finance Agency (FHFA), Edward DeMarco has been tasked with managing the GSEs’ mortgage portfolio and protecting taxpayers from future losses.
At Tuesday’s hearing, Director DeMarco testified on the need for Congress and the Administration to reduce or eliminate the government’s near total support for the mortgage market. This will open the door for private capital to return and result in a healthier, more sustainable housing finance system. After years of inaction from the Administration and congressional Democrats on GSE reform, Chairman Hensarling announced the committee will markup true GSE reform legislation in the near future.
The Cost of Regulation
Nearly three years after the enactment of the Dodd-Frank Act, community banks struggle with navigating the confusing, complex, voluminous, and harmful rules and regulations of this law, according to a recent report from the Federal Deposit Insurance Corporation (FDIC) reviewed at Wednesday’s Financial Institutions Subcommittee hearing.Wednesday’s hearing was the first in what will be a series of hearings focused on the regulatory burden the Dodd-Frank Act imposes on financial institutions across the country.