Patrick McHenryChairman

Washington, May 15, 2014 - House Financial Services Committee Chairman Jeb Hensarling (R-TX) released the following statement today in response to the Senate Banking Committee’s markup of S. 1217, the Housing Finance Reform and Taxpayer Protection Act:

"It is always good to see members of Congress working to move the complicated and contentious issue of housing finance reform forward. I’ve long said we cannot have a healthy economy without sustainable housing finance reform, so I congratulate Senators Johnson and Crapo for their efforts.  It has been almost a year since the PATH Act passed the House Financial Services Committee and regrettably Senate Banking has only now taken action.

"The fact remains the window for action this year is quickly closing, and I fear it may already be too late during this Congress with an already full agenda to get meaningful reform bills through both chambers.  Additionally, while there are several commonsense provisions in Senate bill that are similar to those we included in the PATH Act, the Senate bill features a controversial and irresponsible new politicization of mortgage credit insisted by Senate Democrats under the guise of affordable housing.  This wealth redistribution scheme, far worse than that of the current system, would be a multi-billion dollar annual invitation to return to the lower credit standards, higher risks, and unsustainable lending that created the crisis in the first place.

"From the beginning of this debate, I have said I am willing to listen to and negotiate in good faith with anyone who produces a plan.  I believe the PATH Act is a better plan that protects hardworking taxpayers, offers greater opportunities for Americans to buy homes they can afford to keep, and creates the sustainable housing finance system our economy desperately needs."