WEEK IN REVIEW | Financial Services Committee

Press Releases

WEEK IN REVIEW

Washington, May 13, 2016 -

50 Years after the Creation of HUD: Comparing the U.S. and U.K. Housing Models

On Thursday, the Housing and Insurance Subcommittee held a hearing to compare the housing models of the United States and the United Kingdom. The hearing was part of a series undertaken by the subcommittee to assess affordable and rental housing programs 50 years after the creation of the U.S. Department of Housing and Urban Development.

“Under the bold leadership of Prime Minister Margaret Thatcher, the United Kingdom was able to pursue transformative housing policies that altered the course of the nation’s welfare state,” Subcommittee Chairman Luetkemeyer (R-MO) said. “Prime Minister Thatcher, and Prime Minister Blair after her, envisioned a system that would facilitate a greater role for the private sector in affordable housing, including a ‘right to buy’ policy, which would give housing tenants the opportunity to purchase their homes over time.”

Members also heard from a panel of witnesses from both the U.S. and the U.K. who called for a new public housing model in the U.S. based on private capital and private-sector management practices combined with a public mission to help low income families become economically self-sufficient.

"I believe that the United States' traditional public housing program is no longer viable in its current form to continue serving the needs of low-income Americans," said Richard C. Gentry, President and Chief Executive Officer of the San Diego Housing Commission

“The current public housing system, including HUD itself, rationalizes structure and process over social outcomes, a particularly poor set of choices in the face of the budget numbers that are provided for our programs,” said Gregory P. Russ, Executive Director of the Cambridge Housing Authority of Cambridge, MA.

Speaking of the British model, Harris Beider of Coventry University said, “Since 1988, housing associations have been very successful in raising private finance to support social aims. By 2012, housing associations secured more in private financing to cover operations ... than government grant …for the first time, marking a dramatic shift in the support for social housing.”

Member Spotlights

Rep. Scott Tipton | Dear Congress, Online Lending Is Already Plenty Regulated

The recent conclusion of National Small Business Week provides a good opportunity to reflect on how vital small businesses are to the health of the American economy: They employ about half of private-sector workers and generate more than $6 trillion in annual revenue. Given their pivotal role in driving our economy, it's essential that legislators and regulators do everything in their power to ensure their success.

Reps. Roger Williams and Steve Pearce | Small Business Week: Celebrate Business Owners, Don't Break Them

We believe America’s greatest asset is its workers. Our nation’s work ethic is the best in the world. These are the key building blocks for victory. All we need now is a federal government to let us achieve the American dream.

Weekend Must Reads

Investor’s Business Daily | Repeal Dodd-Frank!

Thanks to the media, many Americans believe that the financial crisis was a result of banking deregulation. A new study delivers a thorough debunking of that idea.

The Daily Signal | The Myth That Regulation Can Stop Financial Crises

Unsurprisingly, these overbearing regulations stifle economic growth. Meanwhile, the causes of the last crisis have not been addressed and the number of too big to fail firms has increased. After witnessing sluggish economic recovery and alarming trends towards overregulation, experts have come together to present the case against Dodd-Frank.

American Banker | The TBTF Fix No One's Discussing: Simpler Capital Ratios

When it was enacted, the Dodd-Frank Act was advertised as the answer to the too-big-to-fail problem: the threat of taxpayer bailouts because the government is unwilling to let a large bank fail.

In the News

Legal News Line | Committee to Hold Hearing on CFPB's Proposed Arbitration Rules

Mortgage Professional | Committee to Scrutinize Arbitration Proposal

Wall Street Journal | Soft Jobs Market Clouds Outlook

Politico | The hidden red flag in the April jobs report

Wall Street Journal | Private Lenders Remodel the Mortgage Market

Reuters | Hopes of factory jobs rebound fade in U.S. heartland

Washington Post | Treasury department says online lenders need more oversight

CNBC | Rates too low for current economy: Fed’s George

Morning Consult | Private Insurers Can Help Save Faltering Federal Flood Program

Wall Street Journal | Kerry’s Peculiar Message About Iran for European Banks

On the Horizon