The Financial Services Committee held a hearing Thursday to review the role and impact the Department of Housing and Urban Development (HUD) has had on federal housing policy in the 50 years since its creation.
Chairman Jeb Hensarling (R-TX) said, "Our collective goal cannot be limited to helping people tolerate poverty, it must be to help them escape poverty. Whether I’ve met them at the Salvation Army Women’s Shelter, Habitat for Humanity homes or the Jubilee Center in my native Dallas, I know that is the aspiration of our low income brothers and sisters. We must help them find ways for them to provide for their families, to conquer generational cycles of dependency, and to have the opportunity to enjoy the dignity of meaningful work."
Republican Members emphasized the value and dignity of work as a path to self-sufficiency and the need for HUD programs to help people escape the cycle of poverty rather than become stuck in it.
Housing and Insurance Subcommittee Chairman Blaine Luetkemeyer (R-MO) said, “HUD’s programs and policies are in need of an overhaul and should turn its focus on reducing red tape instead of creating it. I thank Chairman Hensarling for his commitment to exploring this serious subject so that we can improve opportunity for and accessibility of affordable housing across the nation.”
Legislative Proposals to Promote Main Street Job Growth
The Financial Institutions and Consumer Credit Subcommittee held a hearing on Wednesday to review legislative proposals designed to help Main Street businesses focus their time and resources toward creating jobs and growing their businesses rather than trying to comply to unnecessary and overly burdensome rules. Small businesses and community financial institutions are being buried under Dodd-Frank Act regulations and other bureaucratic mandates.
Subcommittee Chairman Randy Neugebauer (R-TX) noted, "Throughout this Congress, we have seen examples and heard testimony about how regulatory impediments prohibit job creation, cause consolidation of community financial institutions, and decrease choices for consumers."
The bills that the subcommittee reviewed are:
- H.R. 2121, the “SAFE Transitional Licensing Act of 2015,” sponsored by Rep. Steve Stivers
- H.R. 2209, to require the appropriate Federal banking agencies to treat certain municipal obligations as level 2A liquid assets, and for other purposes, sponsored by Rep. Luke Messer
- H.R. 2287, the “National Credit Union Administration Budget Transparency Act,” sponsored by Rep. Mick Mulvaney
- H.R. 2473, the “Preserving Capital Access and Mortgage Liquidity Act of 2015,” sponsored by Rep. William Lacey Clay
- H.R. 2896, the “TAILOR Act,” sponsored by Rep. Scott Tipton
- H.R. 2987, the “Community Bank Capital Clarification Act,” sponsored by Rep. Gregory Meeks
- H.R. 3340, the “Financial Stability Oversight Council Reform Act,” sponsored by Rep. Tom Emmer
The Housing and Insurance Subcommittee held a hearing on Wednesday to examine how HUD and the Rural Housing Service can better serve the housing needs of low-income individuals and families.
Much of the hearing focused on H.R. 3700, the “Housing Opportunity Through Modernization Act,” introduced by Subcommittee Chairman Blaine Luetkemeyer (R-MO).
“This week’s subcommittee hearing provided a great opportunity for both members on the subcommittee and leaders in housing advocacy and industry to express their priorities in housing reform,” he said, noting that witnesses appearing at the hearing all share “the desire to see changes in federal programs so they can more easily serve families in need.”
H.R. 3700, the Housing Opportunity Through Modernization Act, modernizes and streamlines HUD and Rural Housing Service programs to more effectively serve individuals in need of housing assistance. Members continuously expressed bipartisan support for this bill and its objective to responsibly provide housing assistance for low-income communities and the homeless.
Oversight of the SEC’s Division of Investment Management
The Capital Markets and Government Sponsored Enterprises Subcommittee held a Friday oversight hearing of the Securities and Exchange Commission's (SEC) Division of Investment Management.
Committee Members called for the SEC to use its time and resources more wisely toward its statutory mission, with a specific emphasis on capital formation so small businesses can access the financing they need.
Subcommittee Chairman Scott Garrett (R-NJ) remarked, "As part of our oversight responsibility, this Subcommittee will be closely monitoring the SEC’s actions in this area to ensure that they actually reflect the SEC’s three-fold mission, and are not simply ad hoc responses to threats from other regulatory bodies."
MEMBER SPOTLIGHT
Rep. Robert Pittenger | Pittenger: 'We're a lion with no teeth'
Rep. Robert Pittenger, R-N.C., is vice chairman of the House Financial Services Committee's Task Force on Terrorism Financing, which has been investigating ways of improving U.S. efforts to choke off the flow of money to international terrorist groups.
Weekend Must Reads
American Action Forum | When Regulatory Costs Trump Benefits
Typically, whenever an agency issues a major rule, they tout how the benefits greatly exceed the costs. However, agencies are far more reticent about promoting regulations that actually do more harm to the economy than good.
AEI | Is Dodd-Frank’s Orderly Liquidation Authority Necessary to Fix Too Big to Fail?
The Dodd-Frank Act (DFA) Orderly Liquidation Authority has many legal issues that could prevent its use. Should there be a next financial crisis, regulators may again be forced to sell a large failing bank to a larger banking institution, creating yet another too-big-to-fail institution.
On the Horizon
Stay Tuned!
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