With Congress in recess for two weeks, Senate Banking Committee staff are working to agree on possible amendments to the “Johnson-Crapo” housing finance reform draft legislation that was made public on March 16. The Banking Committee is scheduled to mark-up the bill on April 29, the day after Senators return from recess. No agreed upon changes have been made public and several Senators on the committee continue to withhold their support pending potential amendments.
The major news of the week was about increased lobbying efforts by hedge funds and other who own stock in Fannie Mae and Freddie Mac and who want to be paid dividends before the companies are wound down and replaced by a new mortgage insurance entity. They are not expected to prevail with the Senators.
NLIHC remains hopeful that when the bill is marked up, it will continue to apply 75% of a new 10 basis point fee on users of the new system to the National Housing Trust Fund (NHTF). This is estimated to generate $3.75 billion a year in dedicated revenue to the NHTF.
On the House side, NLIHC President and CEO Sheila Crowley sent a letter to House Financial Services Committee Ranking Member Maxine Waters (D-CA) to thank her for funding provided for the NHTF in Ms. Waters’ draft housing finance reform legislation.
The letter, dated April 8 and sent on behalf of NLIHC’s members, thanks Representative Waters “for creating a robust dedicated source of revenue for the National Housing Trust Fund (NHTF) in your draft Housing Opportunities Move the Economy (HOME) Forward Act. We are grateful for your long time support of the NHTF and your prioritization of the housing needs of very poor people.” This bill, like the Johnson-Crapo bill, would direct 75% of the 10 basis point fee on users of the new housing finance system to the NHTF (see Memo, 3/28).
Read the letter to Representative Waters at: http://nlihc.org/sites/default/files/NLIHC_Waters_HOME_ForwardTY_2014.pdf