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AEI: FHA Watch – July 2013 The Protecting American Taxpayers and Homeowners (PATH) Act provides for comprehensive reform of the government’s role in housing finance. Heritage Foundation: Dodd-Frank at Year Three: Onerous and Costly July 21 marks the third anniversary of Dodd–Frank, Washington’s massive regulatory response to the housing market collapse, the failure of major financial firms, and the resulting shock to the economy in 2008. Consumers are facing dramatically higher banking fees and fewer service options because of new government constraints on credit. And for all its vast regulato... Read More »

Rep. Ed Royce hit the nail on the head this week when he correctly pointed out that the PATH Act does not eliminate all government guarantees as some have incorrectly claimed. Courtesy of Rep. Royce’s office, below is his exchange with Federal Reserve Chairman Ben Bernanke this week on how the PATH Act preserves the FHA’s countercyclical role by allowing it to insure loans to any borrower during period of significant credit contraction. This means the PATH Act would preserve the FHA’s existing countercyclical role in mortgage lending, which enables the FHA to serve as a backstop to keep mortga... Read More »

“Fannie Mae will never impose a cost on the American taxpayer…” – James A. Johnson, Chief Executive Officer of Fannie Mae, testifying before the House of Representatives, April 17, 1996 “Under the direction of James A. Johnson, Fannie Mae’s calculating and politically connected chief executive, the company capitalized on its government ties, building itself into the largest and most powerful financial institution in the world. In 2008, however, the colossus would fail, requiring hundreds of billions in taxpayer backing to keep it afloat. Fannie Mae became the quintessential example of a compan... Read More »

UPDATE: After releasing details of the PATH Act, the full committee held a hearing entitled “A Legislative Proposal to Protect American Taxpayers and Homeowners by Creating a Sustainable Housing Finance System” on July 17, 2013, bringing the total to 12 hearing and more than 50 witnesses on this subject since January. We've blogged before about the importance of holding in-depth hearings with leading experts and stakeholders before advancing important legislation. That's why we've held 11 hearings this year to gather a wide variety of ideas and opinions on how to best reform America's governme... Read More »

Housing & Insurance Subcommittee Chairman Randy Neugebauer talked about the Protecting American Taxpayers and Homeowners Act on Fox Business's The Willis Report yesterday evening. He also spoke about the housing reform plan on KFYO’s Lubbock First News. The full committee will hold a hearing on the PATH Act discussion draft this Thursday at 1 p.m. Read More »

This week we'll hold two major full committee hearings. Be sure to check back here on the Bottom Line Blog -- and sign up for our email updates -- for more information throughout the week. Here's what's happening: On Wednesday, the full committee welcomes Federal Reserve Chairman Ben Bernanke at 10 a.m. for the July Humphrey-Hawkins hearing. The Fed Chief's testimony, as well as his accompanying semi-annual Monetary Policy Report, will be released at 8:30 a.m. on Wednesday by the Federal Reserve. This is a change from earlier practice when the testimony and report were not released until the s... Read More »

Leaders of the Financial Services Committee have proposed the PATH Act – the Protecting American Taxpayers and Homeowners Act (.pdf) – to create a sustainable housing finance system for the 21st century. The proposal: Ends the taxpayer-funded bailout of Fannie Mae and Freddie Mac that has cost taxpayers nearly $200 billion – the largest bailout in history; Increases competition by ending the federal government’s domination and control of the housing finance market; and Gives consumers more choices in determining which mortgage best suits their needs. The biggest myth we are hearing about the P... Read More »

Chairman Jeb Hensarling delivers this week's Sunday Video Message introducing the Protecting American Homeowners and Taxpayers Act, the PATH Act for short. Read More »

Wall Street Journal: Housing Reform Breakout The House GOP moves to revive the private home mortgage market. New York Times: Diverging Debate at Fed on When to End Stimulus Federal Reserve Chairman Ben Bernanke said on Wednesday that the Fed was likely to extend the centerpiece of its campaign to bolster the economy — keeping short-term interest rates close to zero — even as it prepares to wind down another key stimulus program that faces mounting internal opposition. Washington Examiner: Costs spiral for CFPB’s lavish new headquarters as Congress fumes Renovation costs for the Consumer Financ... Read More »

Wall Street Journal Editorial: Housing Reform Breakout One perverse result of the financial crisis is that Washington has nationalized housing finance. Taxpayers guarantee about 85% of new mortgages, some $5.1 trillion in mortgage credit and growing. So it's a big and welcome political breakthrough that House Republicans are taking steps to protect taxpayers and restore some rationality to housing markets. On Thursday, House Financial Services Chairman Jeb Hensarling unveiled legislation to close down Fannie Mae and Freddie Mac, add much-needed discipline to the Federal Housing Administration... Read More »