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Cmte Financial Services (R)
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H.R. 1226, the GSE Mission Improvement Act

Washington, Apr 13 -

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 approved H.R. 1226 on a voice vote.