The Senate Committee on Banking, Housing, and Urban Affairs will mark-up the Housing Finance Reform and Taxpayer Protection Act of 2014, commonly known as the Johnson-Crapo bill, on April 29 at 10 am in room 538 of the Dirksen Senate office building. The mark-up is predicted to be lengthy, and may be held over several days.
The Johnson-Crapo bill would wind down government sponsored enterprises Fannie Mae and Freddie Mac and would create a new Federal Mortgage Insurance Corporation (FMIC). The draft bill would require an assessment of 10 basis points on all outstanding FMIC covered securities. These funds would be directed to affordable housing activities with 75% going to the National Housing Trust Fund (NHTF). It is estimated that the fee would generate $5 billion a year, with an estimated $3.75 billion dollars each year directed to the NHTF.
NLIHC is extremely pleased with the treatment of the NHTF in the bill and has issued a call to action urging that NLIHC members contact their Senators on the Committee in support of the treatment of the NHTF in the bill.
Senate Banking Committee Chairman Tim Johnson (D-SD) set Friday, April 25 as the deadline for committee members to submit amendments to the bill. Approximately 80 amendments were filed. Senator Johnson and his Republican counterpart Ranking Member Mike Crapo (R-ID) released a “manager’s amendment” late Friday night that includes changes to the draft bill that they are offering. A preliminary review show no significant changes that would affect the NHTF.
NLIHC would support any amendments that would improve access to credit for underserved borrowers and that assures that fair housing laws are not weakened in the bill. NLIHC supports moving the bill forward. While it will likely be hard to get a bill enacted in the 113th Congress, a bill that passes the Senate Banking Committee with a strong bipartisan vote will be the starting point for negotiations in future Congresses. It is important the language that assesses the 10 basis point fee and directs 75% of the fee to the NHTF be preserved.
Read NLIHC’s Call to Action on the Johnson-Crapo bill at: http://bit.ly/1iox8Ni