H.R. 839, introduced by Rep. Patrick McHenry (NC), would terminate Treasury’ authority to provide new assistance under the Home Affordable Modification Program (HAMP) while preserving the contracts made prior to the bill’s enactment. H.R. 839 prevents $30 billion in TARP funds from being spent. Background: HAMP was announced by the Administration in February 2009 as part of a three-part “Making Home Affordable Program.” $30 billion in TARP funds were set aside for HAMP to provide payments to mortgage servicers for modifying mortgages of struggling borrowers. The Administration claimed HAMP wou... Read More »
H.R. 861, introduced by Rep. Gary Miller (CA) on March 1, terminates the Neighborhood Stabilization Program (NSP) and prevents $1 billion from being spent on this program. Background: In 2008 the Democrats’ GSE bailout bill (the Housing and Economic Recovery Act) established the NSP with $4 billion in funding. NSP provides taxpayer dollars to State and local governments to purchase, renovate, rebuild, and resell abandoned and foreclosed property. The Democrats added another $1.93 billion in funding to the NSP through the Obama stimulus plan in 2009 and another $1 billion in the Dodd-Frank Act.... Read More »
H.R. 836, introduced by Rep. Jeb Hensarling on February 28, 2011, ends HUD’s Emergency Homeowners Relief Program and prevents $1 billion from being spent on this program that increases struggling homeowners’ debts. Background: The Dodd-Frank Act established a $1 billion HUD Emergency Homeowner Relief Program, which provides loans or credit advances to unemployed borrowers who cannot pay their mortgages because of unemployment or reduction in income. Payments under the program may be provided for 12 months, with a possible 12-month extension. The Obama Administration, in its FY 2012 budget pro... Read More »
The legislation, introduced by Capital Markets Subcommittee Chairman Scott Garrett, helps clarify the risk retention rules required under Section 941 of the Dodd-Frank Act to make clear that Fannie Mae and Freddie Mac will be held to the same standards as any other secondary mortgage market participants. A GSE loan purchase or asset-backed security issuance would not affect the status of the underlying assets. On April 6, 2011, the Capital Markets Subcommittee approved the legislation with a vote of 34-0. Read More »
The legislation, introduced by Chairman Bachus, suspends the compensation packages for executives of Fannie Mae and Freddie Mac and places all other employees on the General Schedule pay scale. Since September 2008 when Fannie Mae and Freddie Mac entered Federal conservatorships, the Federal Housing Finance Authority has approved multi-million dollar compensation packages for the GSEs’ top executives. A report released on Thursday by the Inspector General of the FHFA found that the six top executives at Fannie and Freddie were paid $35.4 million since the taxpayers bailed out the GSEs. On Apri... Read More »
The legislation, introduced by Financial Services Committee Vice Chairman Jeb Hensarling, accelerates and formalizes the reduction in the size of the GSEs’ portfolios. As of January 2011, Fannie Mae retained portfolio was $777.059 billion, and Freddie Mac retained portfolio was $694.846 billion. The legislation would cap the GSEs portfolios to no more than $700 billion in the first year, declining to $600 billion for year two, $475 billion for year three, $350 billion for year four, and finally to $250 billion in year five. On April 6, 2011, the Capital Markets Subcommittee approved H.R. 1224 ... Read More »
The legislation, introduced by Oversight and Investigations Subcommittee Chairman Randy Neugebauer, requires that FHFA gradually increase guarantee fees at Fannie Mae and Freddie Mac over the next two years. Under the legislation, the FHFA will consider the market conditions in raising the GSEs’ guarantee fees to ensure that its actions do not disrupt a housing recovery. On April 6, 2011, the Capital Markets Subcommittee approved H.R. 1222 on a vote of 25-9. Read More »
The legislation, introduced by Insurance, Housing and Community Opportunity Subcommittee Chairman Judy Biggert, enhances the authority of FHFA’s Inspector General and expands reporting requirements to Congress. On April 6, 2011, the Capital Markets Subcommittee approved H.R. 31 on a voice vote. Read More »
For years, the Federal government used the GSEs to make homeownership available to people who posed a greater credit risk and would not have otherwise been able to obtain mortgage credit. GSE-manufactured demand boosted home prices to artificially high levels and fostered enthusiasm for the wave of exotic mortgage products that began to flood the market. In light of the risks created by requiring the GSEs to promote affordable homeownership, this bill repeals the GSEs’ affordable housing goals. The legislation is sponsored by Rep. Ed Royce. On April 6, 2011 the Capital Markets Subcommittee app... Read More »
The legislation, introduced by Rep. David Schweikert, prohibits the GSEs from offering, undertaking, transacting, conducting or engaging in any new business activities while in conservatorship or receivership. This restriction will reduce Fannie Mae’s and Freddie Mac’s market dominance and limit their size. On April 6, 2011, the Capital Markets Subcommittee approved H.R. 1227 on a voice vote. Read More »
